Classifying Costs as Factory Overhead Which of the following items are properly classified as part of factory overhead for Ford Motor Company, a maker of heavy automobiles and trucks? Item Part of Factory Overhead: Yes/No a.  Plant manager’s salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassemblies   b.  Depreciation on Flat Rock, Michigan, assembly plant   c.  Dividends paid to shareholders   d.  Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant   e.  Leather to be used on vehicles that have leather interiors   f.  Depreciation on mechanical robots used on the assembly line   g.  Consultant fees for a study of production line efficiency   h.  Dealership sales incentives   i.  Vice president of human resources’s salary   j.  Property taxes on the Dearborn, Michigan, headquarters building

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
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Classifying Costs as Factory Overhead

Which of the following items are properly classified as part of factory overhead for Ford Motor Company, a maker of heavy automobiles and trucks?

Item Part of Factory Overhead: Yes/No
a.  Plant manager’s salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassemblies  
b.  Depreciation on Flat Rock, Michigan, assembly plant  
c.  Dividends paid to shareholders  
d.  Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant  
e.  Leather to be used on vehicles that have leather interiors  
f.  Depreciation on mechanical robots used on the assembly line  
g.  Consultant fees for a study of production line efficiency  
h.  Dealership sales incentives  
i.  Vice president of human resources’s salary  
j.  Property taxes on the Dearborn, Michigan, headquarters building  
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