Question

Indicate whether each of the following costs associated with productionwould be classified as direct materials, direct labor, or manufacturing overhead.

a. Salaried supervisor responsible for several product lines
b. Maintenance personnel
c. Hourly workers assembling goods
d. Nails used to assemble cabinets
e. Bike frame used to build a racing bike
f. Factory utilities
g. Glue used to assemble toys

Answer 1

Answer and Explanation:

The classification is as follows

a. Manufacturing overhead as it is an indirect cost

b. Manufacturing overhead as it is related to factory

c. Direct labor as it represent the hours

d. Manufacturing overhead as it is an indirect material cost

e. Direct material as it represent the material cost

f. Manufacturing overhead as it is an indirect cost

g. Manufacturing overhead as it is an indirect material cost

In this way it could be categorized