Hummer Company uses manufacturing cells to produce its products (a cell is a manufacturingunit dedicated to the production of subassemblies or products). One manufacturing cell produces small motors for lawn mowers. Suppose that the motor manufacturing cell is the costobject. Assume that all or a portion of the following costs must be assigned to the cell.a. Salary of cell supervisorb. Power to heat and cool the plant in which the cell is locatedc. Materials used to produce the motorsd. Maintenance for the cell’s equipment (provided by the maintenance department)e. Labor used to produce motorsf. Cafeteria that services the plant’s employeesg. Depreciation on the planth. Depreciation on equipment used to produce the motorsi. Ordering costs for materials used in productionj. Engineering support (provided by the engineering department)k. Cost of maintaining the plant and groundsl. Cost of the plant’s personnel officem. Property tax on the plant and landRequired:Classify each of the costs as a direct cost or an indirect cost to the motor manufacturing cell.
Hummer Company uses manufacturing cells to produce its products (a cell is a manufacturing
unit dedicated to the production of subassemblies or products). One manufacturing cell produces small motors for lawn mowers. Suppose that the motor manufacturing cell is the cost
object. Assume that all or a portion of the following costs must be assigned to the cell.
a. Salary of cell supervisor
b. Power to heat and cool the plant in which the cell is located
c. Materials used to produce the motors
d. Maintenance for the cell’s equipment (provided by the maintenance department)
e. Labor used to produce motors
f. Cafeteria that services the plant’s employees
g.
h. Depreciation on equipment used to produce the motors
i. Ordering costs for materials used in production
j. Engineering support (provided by the engineering department)
k. Cost of maintaining the plant and grounds
l. Cost of the plant’s personnel office
m. Property tax on the plant and land
Required:
Classify each of the costs as a direct cost or an indirect cost to the motor manufacturing cell.
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