The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that the company incurs.
Required:
For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, selling, or an administrative cost.
1. The cost of a hard drive installed in a computer.
multiple choice 1
Direct labor cost
Direct materials cost Correct
Manufacturing overhead cost
Selling cost
Administrative cost
2. The cost of advertising in the Puget Sound Computer User newspaper.
multiple choice 2
Direct labor cost
Direct materials cost
Manufacturing overhead cost
Selling cost Correct
Administrative cost
3. The wages of employees who assemble computers from components.
multiple choice 3
Direct labor cost Correct
Direct materials cost
Manufacturing overhead cost
Selling cost
Administrative cost
4. Sales commissions paid to the company’s salespeople.
multiple choice 4
Direct labor cost
Direct materials cost
Manufacturing overhead cost
Selling cost Correct
Administrative cost
5. The salary of the assembly shop’s supervisor.
multiple choice 5
Direct labor cost
Direct materials cost
Manufacturing overhead cost Correct
Selling cost
Administrative cost
6. The salary of the company’s accountant.
multiple choice 6
Direct labor cost
Direct materials cost
Manufacturing overhead cost
Selling cost
Administrative cost Correct
7. Depreciation on equipment used to test assembled computers before release to customers.
multiple choice 7
Direct labor cost
Direct materials cost
Manufacturing overhead cost Correct
Selling cost
Administrative cost
Explanation
No further explanation details are available for this problem.
No comments:
Post a Comment