Exercie 21-2 Basic types of Into which of the three elements of manufacturing co
ID: 2509995 • Letter: E
Question
Exercie 21-2 Basic types of Into which of the three elements of manufacturing cost would each of the following be classified? manufacturitg a Gold bullion used by a jewelry manufacturer costs b Wages of assembly-line workers who package frozen food c Salary of plant superintendent d Electricity used in factory operations e Salary of a nurse in a factory first-aid station f Tubing used in manufacturing bicycles g Wages paid by an automobile manufacturer to employees who test-drive completed automobiles h Property taxes on machineryExplanation / Answer
Direct material is that material which can be directly assigned to a particular job.
Direct Labor is that labor which can be directly assigned to a particular job
Overheads or Manufacturing Overheads are those which cannot be directly assigned to a particular job.
Gold bullion used by a Jewelry manufacturer
Direct Material
Wages of assembly –line workers who package frozen food
Direct Labor
Salary of Plant Superintendent
Manufacturing Overhead
Electricity used in factory operations
Manufacturing Overhead
Salary of a nurse in a factory first aid station
Overhead
Tubing used in a manufacturing bicycles
Direct Material
Wages paid by an automobile manufacturer to employees who test –drive completed automobiles
Overhead
Property Taxes on Machinery
Manufacturing Overhead
Gold bullion used by a Jewelry manufacturer
Direct Material
Wages of assembly –line workers who package frozen food
Direct Labor
Salary of Plant Superintendent
Manufacturing Overhead
Electricity used in factory operations
Manufacturing Overhead
Salary of a nurse in a factory first aid station
Overhead
Tubing used in a manufacturing bicycles
Direct Material
Wages paid by an automobile manufacturer to employees who test –drive completed automobiles
Overhead
Property Taxes on Machinery
Manufacturing Overhead
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