Direct Labor, Direct Materials, Manufacturing Overhead, Selling or Administrative Cost?

The cost of a hard drive installed in a computer

Direct Materials.

Direct Labor, Direct Materials, Manufacturing Overhead, Selling or Administrative Cost?

The cost of advertising in the PUDGET SOUND COMPUTER USER newspaper

Direct Labor, Direct Materials, Manufacturing Overhead, Selling or Administrative Cost?

The wages of employees who assemble computers from components

Direct Labor, Direct Materials, Manufacturing Overhead, Selling or Administrative Cost?

Sales commissions paid to the company’s salespeople

Direct Labor, Direct Materials, Manufacturing Overhead, Selling or Administrative Cost?

The wages of the assembly shop’s supervisor

Direct Labor, Direct Materials, Manufacturing Overhead, Selling or Administrative Cost?

The wages of the company’s accountant

Direct Labor, Direct Materials, Manufacturing Overhead, Selling or Administrative Cost?

Depreciation on equipment used to test assembled computers before release to customers

Direct Labor, Direct Materials, Manufacturing Overhead, Selling or Administrative Cost?

Rent on the facility in the industrial park

Combination of manufacturing overhead, selling, and administrative.

The rent would most likely be prorated on the basis of the amount of space occupied by manufacturing, selling, and administrative operations.

Product or Period?

Depretiation on Salespersons Cars

Product or Period?

Rent on Equipment Used in the Factory

Product or Period?

Lubricants Used for Machine Maintenance

Product or Period?

Salaries of personnel who work in the finished

goods warehouse

Product or Period?

Soap and Paper Towels Used by Factory Workers at the End of a Shift?

Product or Period?

Factory Supervisors Salaries

Product or Period?

Heat, Water and Power consumed in the factory

Product or Period?

Materials used for boxing products for shipment

overseas (units are not normally boxed)