The PC Works assembles custom computers from components supplied by various manu

Question

The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below ore some of the costs that are incurred at the company Required: For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, selling, or an administrative cost 1.The cost of a hard drive installed in a computer. Direct labor cost Direct materials cost Manufacturing overhead cost Selling cost Administrative cost

Explanation / Answer

A hard drive is a direct material directly associated with the production of a computer system. So, it will be classified as direct material as it is essential part of making of a computer

So, option B is the correct option

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