Classification of Costs Following is a list of costs from Oakland Company, a furniture manufacturer:1. Wood used in chairs2. Salaries of inspectors3. Lubricant used in machinery4. Factory rent5. Wages of assembly workers6. Factory workers’ compensation insurance7. Sandpaper8. Fabric used for upholstery9. Property taxes on manufacturing plant10. Depreciation on machineryRequired Classify each cost as direct or indirect assuming that the cost object is each item manufactured.Also indicate whether each cost is a variable or fixed cost.
Classification of Costs Following is a list of costs from Oakland Company, a furniture manufacturer:1. Wood used in chairs2. Salaries of inspectors3. Lubricant used in machinery4. Factory rent5. Wages of assembly workers6. Factory workers’ compensation insurance7. Sandpaper8. Fabric used for upholstery9. Property taxes on manufacturing plant10. Depreciation on machineryRequired Classify each cost as direct or indirect assuming that the cost object is each item manufactured.Also indicate whether each cost is a variable or fixed cost.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Classification of Costs Following is a list of costs from Oakland Company, a furniture manufacturer:
1. Wood used in chairs
2. Salaries of inspectors
3. Lubricant used in machinery
4. Factory rent
5. Wages of assembly workers
6. Factory workers’ compensation insurance
7. Sandpaper
8. Fabric used for upholstery
9. Property taxes on manufacturing plant
10.
Required Classify each cost as direct or indirect assuming that the cost object is each item manufactured.
Also indicate whether each cost is a variable or fixed cost.
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