E1.8 (LO 2), AP Evilene Company makes industrial-grade brooms. It incurs the following costs.1. Salaries for broom inspectors.2. Copy machine maintenance at corporate headquarters.3. Hourly wages for assembly workers.4. Research and development for new broom types.5. Salary for factory manager.6. Depreciation on broom-assembly equipment.7. Salary for the CEO administrative assistant.8. Wood for handles.9. Factory cleaning supplies.10. Lubricants for broom-assembly factory equipment.11. Salaries for customer service representatives.12. Salaries for factory maintenance crew.13. Sales team golf outings with customers.14. Salaries for the raw materials receiving department employees.15. Advertising expenses.16. Depreciation on the CFO company car.17. Straw for brooms.18. Salaries for sales personnel.19. Shipping costs to customers.Instructionsa. Indicate whether each cost is direct materials, direct labor, manufacturing overhead, or nonmanufacturing.b. Indicate whether each cost is a product cost or a period cost.

Product costs get incurred when a business produces a good/service. They could be materials or…

Answered: cost is a product cost or a period…

Business

Accounting

cost is a product cost or a period cost.

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 2PB: The following is a list of costs incurred by several manufacturing companies: a. Bonus for vice...

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