FIN + MANAG ACCT (LL) W/CONNECT (YEAR)
FIN + MANAG ACCT (LL) W/CONNECT (YEAR)
9th Edition
ISBN: 9781265202149
Author: Wild
Publisher: MCG
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Chapter 14, Problem 3QS

Classifying product costs C2

Identify each of the following costs as either direct materials (DM), direct labor (DL), or factory overhead (FO). The company manufactures tennis balls.

1. Rubber used to form the cores

2. Factory maintenance

3. Wages paid to assembly workers

4. Glue used in binding rubber cores to felt covers

5.Depreciation-Factory equipment

6.Cants to package the balls

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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
Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a.  Automobile engine   b.  Brake pads   c.  Depreciation of robotic assembly line equipment   d.  Glass for front and rear windshields   e.  Safety helmets and masks for assembly line workers   f.  Salary of quality control inspector   g.  Steering wheel   h.  Tires   i.  Wages of assembly line workers
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