2. Prescription drugs 3. Heating the hospital 4. The salary of the head of pediatrics 5. The salary of the head of pediatrics 6. Hospital chaplain's salary 7. Lab tests by outside contractor 8. Lab tests by outside contractor The pediatric depan The pediatric depar A particular pediatric patient A particular patient A particular patient A particular department The PC Works assembles custom computers from components supplied by various manufacturen ity in a Redmond, Washington, industrial park. Listed below are some of the costs that are incuma EXERCISE 2-2 Classifying Manufacturing Costs [LO2-2] The company is very small and its assembly shop and retail sales store are housedin lactur at the company. Required: For each cost, indicate whether it would most likely be classified as direct labor, direct material manufacturing overhead, selling, or an administrative cost. 1. The cost of a hard drive installed in a computer. 2. The cost of advertising in the Puget Sound Computer User newspaper. 3. The wages of employees who assemble computers from components. 4. Sales commissions paid to the company's salespeople. 5. The wages of the assembly shop's supervisor. 6. The wages of the company's accountant. 7. Depreciation on equipment used to test assembled computers before release to customes. 8. Rent on the facility in the industrial park.
2. Prescription drugs 3. Heating the hospital 4. The salary of the head of pediatrics 5. The salary of the head of pediatrics 6. Hospital chaplain's salary 7. Lab tests by outside contractor 8. Lab tests by outside contractor The pediatric depan The pediatric depar A particular pediatric patient A particular patient A particular patient A particular department The PC Works assembles custom computers from components supplied by various manufacturen ity in a Redmond, Washington, industrial park. Listed below are some of the costs that are incuma EXERCISE 2-2 Classifying Manufacturing Costs [LO2-2] The company is very small and its assembly shop and retail sales store are housedin lactur at the company. Required: For each cost, indicate whether it would most likely be classified as direct labor, direct material manufacturing overhead, selling, or an administrative cost. 1. The cost of a hard drive installed in a computer. 2. The cost of advertising in the Puget Sound Computer User newspaper. 3. The wages of employees who assemble computers from components. 4. Sales commissions paid to the company's salespeople. 5. The wages of the assembly shop's supervisor. 6. The wages of the company's accountant. 7. Depreciation on equipment used to test assembled computers before release to customes. 8. Rent on the facility in the industrial park.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter1: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 3PA: A partial list of Foothills Medical Centers costs follows: a. Advertising hospital services on...
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Question
Exercise 2-2
![2. Prescription drugs
3. Heating the hospital
4. The salary of the head of pediatrics
5. The salary of the head of pediatrics
6. Hospital chaplain's salary
7. Lab tests by outside contractor
8. Lab tests by outside contractor
The pediatric depan
The pediatric depar
A particular pediatric patient
A particular patient
A particular patient
A particular department
The PC Works assembles custom computers from components supplied by various manufacturen
ity in a Redmond, Washington, industrial park. Listed below are some of the costs that are incuma
EXERCISE 2-2 Classifying Manufacturing Costs [LO2-2]
The company is very small and its assembly shop and retail sales store are housedin lactur
at the company.
Required:
For each cost, indicate whether it would most likely be classified as direct labor, direct material
manufacturing overhead, selling, or an administrative cost.
1. The cost of a hard drive installed in a computer.
2. The cost of advertising in the Puget Sound Computer User newspaper.
3. The wages of employees who assemble computers from components.
4. Sales commissions paid to the company's salespeople.
5. The wages of the assembly shop's supervisor.
6. The wages of the company's accountant.
7. Depreciation on equipment used to test assembled computers before release to customes.
8. Rent on the facility in the industrial park.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85e39e9b-3b6a-4fb6-8406-b63a567ff03b%2Fd2215ea9-0840-47af-839c-ee123115c12a%2Fbyh34jj.jpeg&w=3840&q=75)
Transcribed Image Text:2. Prescription drugs
3. Heating the hospital
4. The salary of the head of pediatrics
5. The salary of the head of pediatrics
6. Hospital chaplain's salary
7. Lab tests by outside contractor
8. Lab tests by outside contractor
The pediatric depan
The pediatric depar
A particular pediatric patient
A particular patient
A particular patient
A particular department
The PC Works assembles custom computers from components supplied by various manufacturen
ity in a Redmond, Washington, industrial park. Listed below are some of the costs that are incuma
EXERCISE 2-2 Classifying Manufacturing Costs [LO2-2]
The company is very small and its assembly shop and retail sales store are housedin lactur
at the company.
Required:
For each cost, indicate whether it would most likely be classified as direct labor, direct material
manufacturing overhead, selling, or an administrative cost.
1. The cost of a hard drive installed in a computer.
2. The cost of advertising in the Puget Sound Computer User newspaper.
3. The wages of employees who assemble computers from components.
4. Sales commissions paid to the company's salespeople.
5. The wages of the assembly shop's supervisor.
6. The wages of the company's accountant.
7. Depreciation on equipment used to test assembled computers before release to customes.
8. Rent on the facility in the industrial park.
Expert Solution
Step 1
Manufacturing cost:
Manufacturing cost is the sum of costs of all resources consumed in the process of manufacturing a product.
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