Identify whether the following items should be included in Direct Materials (DM), Direct Labor (DL), Manufacturing Overhead (MO) or Period Costs (PC) (a) Assembly line wages (b) Raw materials used directly in product (c) Depreciation on office equipment (d) Property taxes on factory building (e) Rent on factory building (f) Sales commissions (g) Depreciation on factory equipment (h) Factory utilities (i) Wages for factory maintenance workers 0) Advertising (k) Indirect materials used in production (1) Factory manager's salary

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management analysis
Section: Chapter Questions
Problem 3DQ: Which of the following costs would be included in the cost of a manufactured product according to...
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Identify whether the following items should be included in Direct Materials (DM), Direct
Labor (DL), Manufacturing Overhead (MO) or Period Costs (PC)
(a) Assembly line wages
(b) Raw materials used directly in product
(c) Depreciation on office equipment
(d) Property taxes on factory building
(e) Rent on factory building
(f) Sales commissions
(g) Depreciation on factory equipment
(h) Factory utilities
(i) Wages for factory maintenance workers
0) Advertising
(k) Indirect materials used in production
(1) Factory manager's salary
Transcribed Image Text:Identify whether the following items should be included in Direct Materials (DM), Direct Labor (DL), Manufacturing Overhead (MO) or Period Costs (PC) (a) Assembly line wages (b) Raw materials used directly in product (c) Depreciation on office equipment (d) Property taxes on factory building (e) Rent on factory building (f) Sales commissions (g) Depreciation on factory equipment (h) Factory utilities (i) Wages for factory maintenance workers 0) Advertising (k) Indirect materials used in production (1) Factory manager's salary
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