Question

aste u & AD A ~ Aa- A = = Ă a. Styles Editing Dictate = = = - 2 T Paragraph aboard Font Voice Styles 15 16 CHAPTER TWO 5) Which of the following would NOT be a cost that could be directly traced to a custom piece of furniture based upon physical observation? a) The wood and upholstery materials that are in the final piece. b) The depreciation on factory equipment. c) The labor of the worker assembling the piece of furniture, d) The labor of the woodworker who finishes the wood of the piece. Answer: 12 points) 6) Which of the following items would NOT be classified as part of factory overhead of a firm that makes sailboats? a) Factory supplies used. b) Depreciation of factory buildings. Page 1 of 1) 1451 words English (United States) Focus A AD 0 % 7:04 PM ENG 2/10/2020

Answer 1

1. Option (b) is correct

Depreciation on factory equipment is not a cost that can be directly traced to a custom piece of furniture based upon physical observation. Depreciation is allocation of the cost of asset and is an indirect cost and cannot be seen upon physical observation.

2. Option (c) is correct

Canvas used in sail is a direct cost and is not part of factory overheads.

Factory overhead includes cost of indirect material, indirect labor and indirect expenses.

Option (a) is incorrect as factory supplies are indirect materials and are part of factory overheads.

Option (b) is incorrect as Depreciation of factory buildings is an indirect expense and comes under factory overheads.

Option (d) is incorrect as indirect materials are part of factory overheads.