The accountant in a factory that produces biscuits for fast-food restaurants wants to assign costs to boxes of biscuits. Which of the following costs can be traced directly to boxes of biscuits? a. The cost of flour and baking soda b. The wages of the mixing labor c. The cost of the boxes d. The cost of packing labor e. All of these

The accountant in a factory that produces biscuits for fast-food restaurants wants to assign costs to boxes of biscuits. Which of the following costs can be traced directly to boxes of biscuits? a. The cost of flour and baking soda b. The wages of the mixing labor c. The cost of the boxes d. The cost of packing labor e. All of these

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 6MCQ: Which of the following is an indirect cost? a. The cost of denim in a jeans factory b. The cost of...

See similar textbooks

Similar questions

Which of the following is an indirect cost? a. The cost of denim in a jeans factory b. The cost of mixing labor in a factory that makes over-the-counter pain relievers c. The cost of bottles in a shampoo factory d. The cost of restriping the parking lot at a perfume factory e. All of these.
1. One of the products Al-Can Products, Inc. manufactures for their rest stops are benches. Perform the following tasks to classify and record common manufacturing costs. 2. The production of the rest stop benches requires the following costs. For each cost, determine how the cost should be classified by placing an X in the appropriate column. Wages of factory supervisor Rent of company headquarters Lumber to manufacture benches Factory property taxes Bench inspector wages Wages for the marketing manager Cleaning supplies to maintain equipment Wages of production employees Stain for the benches Direct Materials Direct Factory Labor Overhead None
Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as either a period or a product cost. Cost Item Predicting Cost Behavior Preparing Financial Statements 1.Hamburger buns in a Wendy’s restaurant. 2.Advertising by a dental office. 3.Apples processed and canned by Del Monte. 4.Shipping canned apples from a Del Monte plant to customers. 5.Insurance on a Bausch & Lomb factory producing contact lenses. 6.Insurance on IBM’s corporate headquarters. 7.Salary of a supervisor overseeing production of printers at Hewlett-Packard. 8.Commissions paid to automobile salespersons. 9.Depreciation of factory lunchroom facilities at a General Electric plant. 10.Steering wheels installed in BMWs.
Following are selected costs of a company that manufactures computer chips. Classify each as either a product cost or a period cost. Then classify each of the product costs as direct material, direct labor, or overhead. 1. Plastic boards used to mount chips 2. Advertising costs 3. Factory maintenance workers’ salaries 4. Real estate taxes paid on the sales office 5. Real estate taxes paid on the factory 6. Factory supervisor salary 7. Depreciation on factory equipment 8. Assembly worker hourly pay to make chips
Consider a company that is in the business of producing canned fruits for grocery stores. (It is not in the business of growing the fruit.) List the items that would likely be included as this company's direct materials, direct labor, indirect materials, and other overhead.
Which of the following businesses would most likely useprocess costing?a. A law firm.b. A maker of frozen orange juice.c. A hospital.d. An auto repair shop.
Classify each cost as being either variable or fixed with respect to the number of units produced and sold. Also classify each cost as either a period or a product cost. Predicting Cost Preparing Behavior Statements Cost Item 1. Hamburger buns in a Wendy's restaurant. 2. Advertising by a dental office. 3. Apples processed and canned by 4. Shipping canned apples from a Del Monte plant to customers. 5. Insurance on a Bausch & Lomb factory producing contact lenses
Product vs Period Cost Classifications Mr. Suncat has hired you to help him determine his product costs. He has given you the following list of costs and has asked you to classify these costs using the following chart by placing an “X” under the appropriate heading: Product Costs Direct Materials Direct Labor Manufacturing Overhead Period Costs Mortgage on the Cake Shop Insurance on the Cake Shop Baking ingredients (flour, sugar, etc) Utilities for the Cake Shop Office supplies Wages for the bakers Salary for his accountant, Mrs. Suncat Depreciation on office equipment Cooking spray to grease cake pans Bakery supervisor salary…
Which of the following manufacturing costs is an indirect cost of producing a product? a.commissions for sales personnel b.memory chips for a microcomputer manufacturer c.oil lubricants used for factory machinery d.hourly wages of an assembly worker
For each of the following, indicate whether the cost would typically be considered product or period cost for the cost object given. Clear All Product Period Tires for the bicycles Electricity costs to run the factory Selling costs for the period Delivery costs to take the bicycles to stores Accountant salaries
Charles has provided some of the costs he expects to incur as follows. Decide on the classifications that could be applied to each of these costs using the table provided. The cost object in each case is the cheesecake. Cost Product Period Direct Direct Factory Selling Administrative Direct Indirect Prime Conversion Cost Materials Labor Overhead Expense Expense Cost Cost Cost Cost Eggs used to make cheesecakes Baker’s wages Delivery driver wages Depreciation of office computers Power to run the cheesecake ovens President’s salary Sales commissions Factory supervisor salary
Charles has provided some of the costs he expects to incur as follows. Decide on the classifications that could be applied to each of these costs using the table provided. The cost object in each case is the cheesecake. Product Period Direct Direct Factory. Selling Administrative Direct Indirect Prime Conversion Cost Cost Cost Materials Labor Overhead Expense Expense Cost Cost Cost Cost Eggs used to make cheesecakes Baker's wages Delivery driver wages Depreciation of office computers Power to run the cheesecake ovens President's salary Sales commissions Factory supervisor salary