Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether each
ID: 2328238 • Letter: C
Question
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. Depreciation of robotic assembly line equipment b. V8 automobile engine c. Steering wheel d. Wheels e. Painting safety masks for employees working in the paint room f. Salary of test driver g. Glass used in the vehicle’s windshield h. Wages of assembly line workerExplanation / Answer
Answer:
Cost
Classification
a. Depreciation of robotic assembly line equipment
factory overhead cost
b. V8 automobile engine
Direct materials cost
c. Steering wheel
Direct materials cost
d. Wheels
Direct materials cost
e. Painting safety masks for employees working in the paint room
factory overhead cost
f. Salary of test driver
factory overhead cost
g. Glass used in the vehicle’s windshield
Direct materials cost
h. Wages of assembly line worker
Direct labor cost
Cost
Classification
a. Depreciation of robotic assembly line equipment
factory overhead cost
b. V8 automobile engine
Direct materials cost
c. Steering wheel
Direct materials cost
d. Wheels
Direct materials cost
e. Painting safety masks for employees working in the paint room
factory overhead cost
f. Salary of test driver
factory overhead cost
g. Glass used in the vehicle’s windshield
Direct materials cost
h. Wages of assembly line worker
Direct labor cost
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