Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of Procter & Gamble (PG), a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a.  Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant   b.  Licensing payments for use of Disney characters on children products   c.  Maintenance supplies   d.  Packaging materials   e.  Paper used in bath tissue   f.  Plant manager salary for the Iowa City, Iowa, plant   g.  Resins for body wash products   h.  Salary of process engineers   i.  Scents and fragrances used in making soaps and detergents   j.  Wages of production line employees at the Pineville, Louisiana, soap and detergent plant

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter1: Introduction To Managerial Accounting
Section: Chapter Questions
Problem 2E: Indicate whether the following costs of Procter Gamble (PG), a maker of consumer products, would be...
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Classifying Costs as Materials, Labor, or Factory Overhead

Indicate whether the following costs of Procter & Gamble (PG), a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost:

Cost Classification
a.  Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant  
b.  Licensing payments for use of Disney characters on children products  
c.  Maintenance supplies  
d.  Packaging materials  
e.  Paper used in bath tissue  
f.  Plant manager salary for the Iowa City, Iowa, plant  
g.  Resins for body wash products  
h.  Salary of process engineers  
i.  Scents and fragrances used in making soaps and detergents  
j.  Wages of production line employees at the Pineville, Louisiana, soap and detergent plant  
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