Your organization has opened a walk-in clinic.  A list of expenses has been given to the new staff accountant, Marvin, from the walk-in clinic manager and Marvin needs your help.  Marvin wants you to help him identify whether costs shown in the table below are direct or indirect.  Additionally, Marvin would like you to describe: 1.  The monetary total of direct and indirect costs.  Item Cost Direct Indirect IT Salaries and Benefits $1,500     RN Salaries and Benefits $9,600     Utilities and Telephone $3,000     Carpets $1,000     Magazine Subscriptions $     50     Vehicle Expense $1,775     Exam Table $5,500     End Tables $   500     Coffee Tables $1,400     Facility Insurance $   650     Staff Uniforms $1,200     Cleaning Supplies $   200     Desk Lamps $   150     Front Desk Flowers $   300     Bottled Water $   250     Facility Maintenance $   700     Landscaping Expense $1,800     Facility Cleaning $1,500

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter6: Business Expenses
Section: Chapter Questions
Problem 25P
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Your organization has opened a walk-in clinic.  A list of expenses has been given to the new staff accountant, Marvin, from the walk-in clinic manager and Marvin needs your help.  Marvin wants you to help him identify whether costs shown in the table below are direct or indirect.  Additionally, Marvin would like you to describe:

1.  The monetary total of direct and indirect costs. 

Item Cost Direct Indirect
IT Salaries and Benefits $1,500    
RN Salaries and Benefits $9,600    
Utilities and Telephone $3,000    
Carpets $1,000    
Magazine Subscriptions $     50    
Vehicle Expense $1,775    
Exam Table $5,500    
End Tables $   500    
Coffee Tables $1,400    
Facility Insurance $   650    
Staff Uniforms $1,200    
Cleaning Supplies $   200    
Desk Lamps $   150    
Front Desk Flowers $   300    
Bottled Water $   250    
Facility Maintenance $   700    
Landscaping Expense $1,800    
Facility Cleaning $1,500    
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