BA 620 Homework, Week 3 Classify the following costs incurred by a restaurant ch

Question

BA 620 Homework, Week 3 Classify the following costs incurred by a restaurant chain as product or period costs. For the product costs, identify if they are direct materials, direct labor, or manufacturing overhead. 1. a) Cost of food sold-Direct Materials b) Restaurant employee wages-Direct Labor c) Fees paid delivery help d) Renton office building for corporate officers e) Depreciation on restaurant equipment-Manufacturing Overhead f) Utilities in the restaurants-Manufacturing Overhead g) Supplies (soap, floor wax, etc.) for the corporate offices h) Advertising costs

Explanation / Answer

Product/Period Type A. Cost of food sold Product   Direct material B. Restaurant employee wages Product Direct labour cost C. Fees paid for delivery help Period Selling Overheads D. Rent on office building Period Admin Overheads E. Depreciation on Equipment Period Manufacturing overheads F. Utilities in retaurants Period Manufacturing overheads G. Supplies for the corporate offices Period Admin Overheads H. Advertising costs period Selling Overheads

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