Question

Chapter 18 Discussion Board Assume that we tour the manufacturing facility where Grady White boats are manufactured. List 3 specific direct costs (for instance, I realize direct materials and direct labor are direct costs but I want examples of specific direct materials/direct labor you envision at the plant). After listing the direct costs, I then want you to list 3 specific indirect costs (overhead costs) that you are likely to see at the factory. Post your comments, questions and concerns here concerning Chapter 18 material.

Answer 1

Examples of direct material- steel, aluminium, fibre-reinforced plastic (FRP), and polyethylene

Examples of Direct labour -wages paid to workers in an assembly line.

Examples of Direct expenses -

• customer service.
• purchase of goods to be sold.
• transit of goods from the supplier

Examples of indirect expenses -

• facility insurance.
• equipment depreciation.
• equipment maintenance.
• rent.
• utilities.
• office supplies.
• advertising.