udmilla Construction Company is composed of two divisions: (1) Home Construction and (2) Commercial Construction. The Home Construction Division is in the process of building 12 houses and the Commercial Construction Division is working on three projects. Required Identify each cost as being a direct or indirect cost, assuming the cost objects are the individual products (houses or projects). Identify each cost as being a direct or indirect cost, assuming the cost objects are the two divisions. Identify each cost as being a direct or indirect cost, assuming the cost object is Ludmilla Construction Company as a whole.

Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter4: Accounting For Factory Overhead
Section: Chapter Questions
Problem 11E: Classify each of the following items of factory overhead as a(n) unit-level, batch-level,...
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Ludmilla Construction Company is composed of two divisions: (1) Home Construction and (2) Commercial Construction. The Home Construction Division is in the process of building 12 houses and the Commercial Construction Division is working on three projects.

Required

  1. Identify each cost as being a direct or indirect cost, assuming the cost objects are the individual products (houses or projects).

  2. Identify each cost as being a direct or indirect cost, assuming the cost objects are the two divisions.

  3. Identify each cost as being a direct or indirect cost, assuming the cost object is Ludmilla Construction Company as a whole.

Complete this question by entering your answers in the tabs below.
Required A Required B
Required C
Identify each cost as being a direct or indirect cost, assuming the cost objects are the two divisions.
Items
Wages of workers assigned to a specific construction project
Supplies used by the Commercial Construction Division
Labor on a particular house
Salary of the supervisor of commercial construction projects
Supplies, such as glue and nails, used by the Home Construction Division
Cost of building permits
Materials used in commercial construction projects
Depreciation on home building equipment (small tools such as hammers or saws)
Company president's salary
Depreciation on crane used in commercial construction
Depreciation on home office building
Salary of corporate office manager
< Required A
Required C >
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required A Required B Required C Identify each cost as being a direct or indirect cost, assuming the cost objects are the two divisions. Items Wages of workers assigned to a specific construction project Supplies used by the Commercial Construction Division Labor on a particular house Salary of the supervisor of commercial construction projects Supplies, such as glue and nails, used by the Home Construction Division Cost of building permits Materials used in commercial construction projects Depreciation on home building equipment (small tools such as hammers or saws) Company president's salary Depreciation on crane used in commercial construction Depreciation on home office building Salary of corporate office manager < Required A Required C >
Required A Required B Required C
Identify each cost as being a direct or indirect cost, assuming the cost objects are the individual products (houses or
projects).
Items
Wages of workers assigned to a specific construction project
Supplies used by the Commercial Construction Division
Labor on a particular house
Salary of the supervisor of commercial construction projects
Supplies, such as glue and nails, used by the Home Construction Division
Cost of building permits
Materials used in commercial construction projects
Depreciation on home building equipment (small tools such as hammers or saws)
Company president's salary
Depreciation on crane used in commercial construction
Depreciation on home office building
Salary of corporate office manager
< Required A
Required B >
Transcribed Image Text:Required A Required B Required C Identify each cost as being a direct or indirect cost, assuming the cost objects are the individual products (houses or projects). Items Wages of workers assigned to a specific construction project Supplies used by the Commercial Construction Division Labor on a particular house Salary of the supervisor of commercial construction projects Supplies, such as glue and nails, used by the Home Construction Division Cost of building permits Materials used in commercial construction projects Depreciation on home building equipment (small tools such as hammers or saws) Company president's salary Depreciation on crane used in commercial construction Depreciation on home office building Salary of corporate office manager < Required A Required B >
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