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Exercise 1-2 Classifying Manufacturing Costs (L01-2] The PC Works assembles custom computers from components supplied by variSelling cost Administrative cost 3.The wages of employees who assemble computers from components. Direct labor cost Direct ma5.The salary of the assembly shops supervisor. Direct labor cost Direct materials cost Manufacturing overhead cost Selling cDirect materials cost O Manufacturing overhead cost O Selling cost Administrative cost

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Answer #1
1. The Cost of a hard drive installed in a computer
Answer: Direct Material Cost.
2. The cost of advertising in the Puget Sound Computer User newspaper
Answer: Selling Cost
3. The wages of employees who assemble computers from components
Answer: Direct Labor Cost
4. Sales commission paid to the company’s sales people
Answer: Selling Cost
5. The salary of the assembly shop's supervisor.
Answer: Administrative Cost
6. The salary of the company's accountant
Answer: Administrative Cost
7. Depreciation on equipment used to test assembled computers before release to customers.
Answer: Manufacturing overhead cost

1. The Cost of a hard drive installed in a computer Answer: Direct Material Cost. 2. The cost of advertising in the Puget Sou

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