Question

ure akekssignmentSessionLocator Sinprogress=false marts Chrome Imported From Sa. director o f factory overhead.co Cost Calculator Print om Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials com Classification a. Automobile engine bile engine Factory overhead cost b. Brake pads c. Depreciation of robotic assembly line equipment Factory overhead cost d. Glass for front and rear windshields Direct materials cost e. Safety helmets and masks for assembly line workers f. Salary of quality control inspector 9. Steering wheel h. Tires I. Wages of assembly line workers Previous Next SASTOG All work saved Arold

Answer 1

Classification of Costs of an automobile Manufacturer Cost Particulars Type of Cost Automobile Engine Direct Material Cost 0 . Break Pads Direct Material Cost 0 Depriciation of Robotic assembly line Equipment Factory Overhead Cost 0 Glass For Front and Rear Window Sheilds Direct Material Cost 0 Safety Equipment and masks of assembly line workers Factory Overhead Cost 4 Salary of Quality control Inspector Factory Overhead Cost Steering Wheel Direct Material Cost O Tires Direct Material Cost Wages of Assembly line workers Direct Labour Cost - Direct Material Cost Direct Material Used in The Production of An Automobile So in the Given Question Automobile Engine Break Pads Glass For Front and Rear Window Sheilds Steering Wheel Tires are all the parts of an automobile, needed by any automobile manufacturer for making the Vehicle, Hence These are all Classified under Direct material Cost Direct Labour Cost Direct Labour Used in The Production of An Automobile and where thay can be clearly attributable to the Production So in the Given Question Wages of Assembly line workers Since in the Given Costs only assembly line wages of the labourers are directly attributable and can be assigned to Procuction, Only these cost is classified under direct labour cost Factory Overhead Cost Factory Overhead Cost also called as Indirect Expenses/Indirect Costs/Overheads are Those General Costs incurred by the management for the purpose of running the Factory, But the same cant be attributed directly to the Product being Manufactured So in the Given Question Depriciation of Robotic assembly line Equipment Safety Equipment and masks of assembly line workers Salary of Quality control Inspector Since the Above costs are not directly aatributable to production line, They can only be apportioned. Hence, all the above costs are classified as Factory overhead costs