Humboldt Corporation manufactures electronic products, including calculators and
ID: 2466798 • Letter: H
Question
Humboldt Corporation manufactures electronic products, including calculators and printers.
Cost items of the company include:
1. Labor on assembling a printer
2. Salary of an employee who supervises calculator manufacturing
3. Materials used in making a printer
4. Company president's salary
5. Salary of the manager of the Calculator Division
6. Depreciation on corporate headquarters building
7. Ink cartridges installed in printer during manufacture
8. Depreciation on equipment used in making calculators
9. Supplies used in corporate offices
Which of the costs listed above is a direct cost assuming the cost object is an individual printer?
Numbers 1 and 3
Numbers 1, 3, and 7
Number 3 only
None of the costs is direct to an individual printer
A.Numbers 1 and 3
B.Numbers 1, 3, and 7
C.Number 3 only
D.None of the costs is direct to an individual printer
Explanation / Answer
B
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