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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 machinery

Explanation / 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