What costs are considered conversion costs? a. Steel in a car factory b. Depreciation on factory equipment c. Monthly advertising expenses d. Sales commissions
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What costs are considered conversion costs?
a. Steel in a car factory
b.
c. Monthly advertising expenses
d. Sales commissions
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- Assign each of the following expenses to either the machine cost pool or the factory cost pool: A. property taxes B. heat and air-conditioning C. electricity, machines D. plant depreciation E. electricity, plant F. machine maintenance wagesWhich of the following is a conversion cost? raw materials direct materials administrative expenses factory depreciation expensesThis list contains costs that various organizations incur; they fall into three categories: direct materials (DM), direct labor (DL), or overhead (OH).t Classify each of these items as direct materials, direct labor, or overhead. Glue used to attach labels to bottles containing a patented medicine. Compressed air used in operating paint sprayers for Student Painters, a company that paints houses and apartments. Insurance on a factory building and equipment. A production department supervisors salary. Rent on factory machinery. Iron ore in a steel mill. Oil, gasoline, and grease for forklift trucks in a manufacturing companys warehouse. Services of painters in building construction. Cutting oils used in machining operations. Cost of paper towels in a factory employees washroom. Payroll taxes and fringe benefits related to direct labor. The plant electricians salaries. Crude oil to an oil refinery. Copy editors salary in a book publishing company. Assume your classifications could be challenged in a court case. Indicate to your attorneys which of your answers for part a might be successfully disputed by the opposing attorneys and why. In which answers are you completely confident?
- Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable cost, and as a product and/or period cost. Wages of administrative staff Shipping costs on merchandise sold Wages of workers assembling computers Cost of lease on factory equipment Insurance on factory Direct materials used in production of lamps Supervisor salary, factory Advertising costs Property taxes, factory Health insurance cost for company executives Rent on factoryFor apparel manufacturer Abercrombie Fitch, Inc. (ANF), classify each of the following costs as either a product cost or a period cost: a. Advertising expenses b. Chief financial officers salary c. Depreciation on office equipment d. Depreciation on sewing machines e. Fabric used during production f. Factory janitorial supplies g. Factory supervisors salaries h. Property taxes on factory building and equipment i. Oil used to lubricate sewing machines j. Repairs and maintenance costs for sewing machines k. Research and development costs l. Sales commissions m. Salaries of distribution center personnel n. Salaries of production quality control supervisors o. Travel costs of media relations employees p. Utility costs for office building q. Wages of sewing machine operatorsWhich of the following costs is not a product cost? *1 pointa. Depreciation on the plant installed in the factoryb. The electricity cost of the office of factory foremanc. The cost of shipping finished products to customersd. The cost of fuel used in the factory
- Question Content Area Which of the following would be included in the cost of a product manufactured according to absorption costing? a. sales salaries b. advertising expense c. office supplies costs d. depreciation expense on factory buildingIdentify the following costs as a prime cost (P), conversion cost (C), or both (B) for an automobile manufacturer:a. Wages of employees that operate painting equipmentb. Wages of the plant managerc. Steeld. Oil used for assembly line machineryWhich of the following is part of factory overhead cost? a.depreciation of sales person's vehicle b.sales commissions c.depreciation of factory equipment and machines d.direct materials used
- what of the costs is an example of a cost that remains the same in total as the number of units produced changes a. salary of a factory supervisor b. direct materials c. direct labor d. units-of-production depreciation on factory equipmentWhich of the following costs is best classified as a fixed cost with respect to volume of activity? (See your Chapter 20 notes, page 5) Direct labor Electricity used to heat, light, and cool a factory Cleaning supplies used in an automobile assembly plant Straight-line depreciation expense of a machine used in a factory Total cost of salaries paid to quality inspectors in a manufacturing plant Tires used in an automobile manufacturing plantClassify the following costs as either production or non-production Depreciation of plant and machinery Warehouse wages Carriage outwards Direct material cost Classify the following costs as either direct or indirect Factory rent Factory workers wages Insurance of factory buildings Classify the following costs as either variable, fixed or mixed Landline telephone charges Factory manager salary salesmen commission based on number of products sold
