Homework Answers
Direct cost : It is nothing but price that can be directly attributable to cost object.
Indirect cost : It is the price that cannot be directly attributable to cost object.
Identifying each cost as Indirect or direct cost assuming the cost objects are Individual products (houses or projects)
Cost which can be specifically identified to one house or project allot as direct cost otherwise indirect cost
|
Particulars |
Direct cost |
Indirect cost |
|
Wages of workers assigned to a specific construction project |
Direct cost |
|
|
Supplies used by the commercial construction division |
Indirect cost |
|
|
Labor on a particular house |
Direct cost |
|
|
Salary of the supervisor of commercial construction projects |
Indirect cost |
|
|
Supplies, Such as glue and nails, used by home construction division |
Indirect cost |
|
|
Cost of building permits |
Direct cost |
|
|
Materials used in commercial construction projects |
Indirect cost |
|
|
Depreciation on home building equipment (Small tools such as hammers or saws) |
Direct cost |
|
|
Company president’s salary |
Indirect cost |
|
|
Depreciation on crane used in commercial construction |
Indirect cost |
|
|
Depreciation on home office building |
Indirect cost |
|
|
Salary of corporate office manager |
Indirect cost |
Identifying each cost as Indirect or direct cost assuming the cost objects are two divisions
|
Particulars |
Direct cost |
Indirect cost |
|
Wages of workers assigned to a specific construction project |
Direct cost |
|
|
Supplies used by the commercial construction division |
Direct cost |
|
|
Labor on a particular house |
Direct cost |
|
|
Salary of the supervisor of commercial construction projects |
Direct cost |
|
|
Supplies, Such as glue and nails, used by home construction division |
Direct cost |
|
|
Cost of building permits |
Direct cost |
|
|
Materials used in commercial construction projects |
Direct cost |
|
|
Depreciation on home building equipment (Small tools such as hammers or saws) |
Direct cost |
|
|
Company president’s salary |
Indirect cost |
|
|
Depreciation on crane used in commercial construction |
Direct cost |
|
|
Depreciation on home office building |
Indirect cost |
|
|
Salary of corporate office manager |
Indirect cost |
Identifying each cost as Indirect or direct cost assuming the cost object is Ludmilla Constriction Company as a whole
|
Particulars |
Direct cost |
Indirect cost |
|
Wages of workers assigned to a specific construction project |
Direct cost |
|
|
Supplies used by the commercial construction division |
Direct cost |
|
|
Labor on a particular house |
Direct cost |
|
|
Salary of the supervisor of commercial construction projects |
Direct cost |
|
|
Supplies, Such as glue and nails, used by home construction division |
Direct cost |
|
|
Cost of building permits |
Direct cost |
|
|
Materials used in commercial construction projects |
Direct cost |
|
|
Depreciation on home building equipment (Small tools such as hammers or saws) |
Indirect cost |
|
|
Company president’s salary |
Indirect cost |
|
|
Depreciation on crane used in commercial construction |
Indirect cost |
|
|
Depreciation on home office building |
Indirect cost |
|
|
Salary of corporate office manager |
Indirect cost |
I hope this will help you. If requires clarification, you may comment below.
Add Answer to:
Exercise 4-1A Direct versus indirect costs Ludmilla Construction Company is composed of two divisions: (1) Home...
WV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor...
WV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $82,000 annually and one salaried estimator who is paid $46,000 annually. The corporate office has two office administrative assistants who are paid salaries of $50,000 and $37,000 annually. The president's salary is $153,000. How much of these salaries are common fixed expenses?
7 WV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site...
7 WV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $98,000 annually and one salaried estimator who is paid $54,000 annually. The corporate office has two office administrative assistants who are paid salaries of $58,000 and $41,000 annually. The president's salary is $165,000. How much of these salaries are common fixed expenses? Multiple Choice $165,000 $264,000 $99,000 $348,000 $ 175 8 Selling price Units in beginning inventory...
Exercise 1-4 Knight Company reports the following costs and expenses in May. $16,400 Direct labor $74,000...
Exercise 1-4 Knight Company reports the following costs and expenses in May. $16,400 Direct labor $74,000 Factory utilities Depreciation on factory equipment 14,350 Sales salaries 47,700 Depreciation on delivery trucks 3,100 Indirect factory labor Indirect materials Direct materials used Factory manager's salary 3,900 Property taxes on factory building 50,600 Repairs to office equipment 83,500 Factory repairs 140,700 Advertising 8,100 Office supplies used 2,100 3,030 15,700 3,720 From the information: Determine the total amount of manufacturing overhead. Manufacturing overhead Determine the...
Complete the total amounts for each column. Product/Manufacturing Costs Direct Labor Manufacturing Overhead Period/Non Manufacturing Period...
Complete the total amounts for each column.
Product/Manufacturing Costs Direct Labor Manufacturing Overhead Period/Non Manufacturing Period Cost/Expense Direct Materials Depreciation on Factory Equipment Rent Expense - Sales Office Sales peoples Salaries Wood for making Chairs Wages for Assembly Line Workers Small nails& Glue for production Supplies for Accountants Depreciation on Delivery Truck Rent for Factory Factory Security Salaries Production Manager Salary Supplies Expense for factory Depreciation on Sales Cars Depreciation on factory computers Materials manager salary Factory Utilities Expense Sales...
Complete the total amounts of each column. Product/Manufacturing Costs Direct Labor Manufacturing Overhead Period/Non Manufacturing Period...
Complete the total amounts of each column.
Product/Manufacturing Costs Direct Labor Manufacturing Overhead Period/Non Manufacturing Period Cost/Expense Direct Materials Depreciation on Factory Equipment Rent Expense - Sales Office Sales peoples Salaries Wood for making Chairs Wages for Assembly Line Workers Small nails& Glue for production Supplies for Accountants Depreciation on Delivery Truck Rent for Factory Factory Security Salaries Production Manager Salary Supplies Expense for factory Depreciation on Sales Cars Depreciation on factory computers Materials manager salary Factory Utilities Expense Sales...
$69,800 48,100 Exercise 1-4 Knight Company reports the following costs and expenses in May. Factory utilities...
$69,800 48,100 Exercise 1-4 Knight Company reports the following costs and expenses in May. Factory utilities $16,200 Direct labor Depreciation on factory 13,350 Sales salaries equipment Property taxes on factory Depreciation on delivery trucks 4,900 building Indirect factory labor 49,600 Repairs to office equipment Indirect materials 82,900 Factory repairs Direct materials used 138,700 Advertising Factory manager's salary 8,900 Office supplies used 3,500 2,300 2,910 16,300 2,850 From the information: Determine the total amount of manufacturing overhead. Manufacturing overheads Determine the...
Question 4 Classify each cost as a period or a product cost. 1. Advertising costs Product...
Question 4
Classify each cost as a period or a product cost.
1.
Advertising costs
Product CostPeriod Cost
2.
Glue and nails used in production
Period CostProduct Cost
3.
Depreciation on factory equipment
Product CostPeriod Cost
4.
Sales commission paid to salesperson
Period CostProduct Cost
5.
Salary of controller
Product CostPeriod Cost
6.
Wages paid to assembly-line workers
Product CostPeriod Cost
7.
Flour used in baking cakes
Period CostProduct Cost
8.
Utilities of the factory building
Period CostProduct Cost
9....
Exercise 14-4 Knight Company reports the following costs and expenses in May. Factory utilities $16,200 Direct...
Exercise 14-4 Knight Company reports the following costs and expenses in May. Factory utilities $16,200 Direct labor $69,800 Depreciation on factory equipment 13,350 Sales salaries 48,100 Depreciation on delivery trucks 4,900 Property taxes on factory building 3,500 Indirect factory labor 49,600 Repairs to office equipment 2,300 Indirect materials 82,900 Factory repairs 2,910 Direct materials used 138,700 Advertising 16,300 Factory manager’s salary 8,900 Office supplies used 2,850 From the information: Determine the total amount of manufacturing overhead. Manufacturing overhead $ Link...
Classify the various costs using the information below, a) Behavior: fixed or variable cost b) Traceability:...
Classify the various costs using the information below,
a) Behavior: fixed or variable cost
b) Traceability: direct or indirect
c) Financial reporting: product or period
d) If product cost, identify which items are direct materials,
direct labor or
manufacturing overhead.
Cost Classification Indirect Product DM Fixed variable Direct DL MOH Period Corporate office building depreciation Deprediation of Equipment used to build various custom houses Lumber Roof Concrete Insulation Ducting Paint Utilities for office (include gas, electric, and water) Mobile phone...
Exercise 1-2 Presented below is a list of costs and expenses usually incurred by Barnum Corporation,...
Exercise 1-2 Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory. Classify the below items into the following categories: (a) direct materials, (b) direct labor, and (c) manufacturing overhead. Item Category 1Salaries for assembly line inspectors. Insurance on factory machines Property taxes on the factory building. Factory repairs E Upholstery used in manufacturing furniture Wages paid to assembly line workers. Factory machinery depreciation. Glue, nails, paint, and other...
7 WV Construction has two divisions: Remodeling and New Home Construction. Each division has an on-site supervisor who is paid a salary of $98,000 annually and one salaried estimator who is paid $54,000 annually. The corporate office has two office administrative assistants who are paid salaries of $58,000 and $41,000 annually. The president's salary is $165,000. How much of these salaries are common fixed expenses? Multiple Choice $165,000 $264,000 $99,000 $348,000 $ 175 8 Selling price Units in beginning inventory...
Exercise 1-4 Knight Company reports the following costs and expenses in May. $16,400 Direct labor $74,000 Factory utilities Depreciation on factory equipment 14,350 Sales salaries 47,700 Depreciation on delivery trucks 3,100 Indirect factory labor Indirect materials Direct materials used Factory manager's salary 3,900 Property taxes on factory building 50,600 Repairs to office equipment 83,500 Factory repairs 140,700 Advertising 8,100 Office supplies used 2,100 3,030 15,700 3,720 From the information: Determine the total amount of manufacturing overhead. Manufacturing overhead Determine the...
Complete the total amounts for each column.
Product/Manufacturing Costs Direct Labor Manufacturing Overhead Period/Non Manufacturing Period Cost/Expense Direct Materials Depreciation on Factory Equipment Rent Expense - Sales Office Sales peoples Salaries Wood for making Chairs Wages for Assembly Line Workers Small nails& Glue for production Supplies for Accountants Depreciation on Delivery Truck Rent for Factory Factory Security Salaries Production Manager Salary Supplies Expense for factory Depreciation on Sales Cars Depreciation on factory computers Materials manager salary Factory Utilities Expense Sales...
Complete the total amounts of each column.
Product/Manufacturing Costs Direct Labor Manufacturing Overhead Period/Non Manufacturing Period Cost/Expense Direct Materials Depreciation on Factory Equipment Rent Expense - Sales Office Sales peoples Salaries Wood for making Chairs Wages for Assembly Line Workers Small nails& Glue for production Supplies for Accountants Depreciation on Delivery Truck Rent for Factory Factory Security Salaries Production Manager Salary Supplies Expense for factory Depreciation on Sales Cars Depreciation on factory computers Materials manager salary Factory Utilities Expense Sales...
$69,800 48,100 Exercise 1-4 Knight Company reports the following costs and expenses in May. Factory utilities $16,200 Direct labor Depreciation on factory 13,350 Sales salaries equipment Property taxes on factory Depreciation on delivery trucks 4,900 building Indirect factory labor 49,600 Repairs to office equipment Indirect materials 82,900 Factory repairs Direct materials used 138,700 Advertising Factory manager's salary 8,900 Office supplies used 3,500 2,300 2,910 16,300 2,850 From the information: Determine the total amount of manufacturing overhead. Manufacturing overheads Determine the...
Question 4
Classify each cost as a period or a product cost.
1.
Advertising costs
Product CostPeriod Cost
2.
Glue and nails used in production
Period CostProduct Cost
3.
Depreciation on factory equipment
Product CostPeriod Cost
4.
Sales commission paid to salesperson
Period CostProduct Cost
5.
Salary of controller
Product CostPeriod Cost
6.
Wages paid to assembly-line workers
Product CostPeriod Cost
7.
Flour used in baking cakes
Period CostProduct Cost
8.
Utilities of the factory building
Period CostProduct Cost
9....
Classify the various costs using the information below,
a) Behavior: fixed or variable cost
b) Traceability: direct or indirect
c) Financial reporting: product or period
d) If product cost, identify which items are direct materials,
direct labor or
manufacturing overhead.
Cost Classification Indirect Product DM Fixed variable Direct DL MOH Period Corporate office building depreciation Deprediation of Equipment used to build various custom houses Lumber Roof Concrete Insulation Ducting Paint Utilities for office (include gas, electric, and water) Mobile phone...
Exercise 1-2 Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory. Classify the below items into the following categories: (a) direct materials, (b) direct labor, and (c) manufacturing overhead. Item Category 1Salaries for assembly line inspectors. Insurance on factory machines Property taxes on the factory building. Factory repairs E Upholstery used in manufacturing furniture Wages paid to assembly line workers. Factory machinery depreciation. Glue, nails, paint, and other...
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