Classifying Costs The following is a list of costs incurred by several businesses. Classify each of the following costs as product costs or period costs. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Costs Classification a.  Salary of quality control supervisor   b.  Packing supplies for products sold. These supplies are a very small portion of the total cost of the product.   c.  Factory operating supplies   d.  Depreciation of factory equipment   e.  Hourly wages of warehouse laborers   f.  Wages of company controller’s secretary   g.  Maintenance and repair costs for factory equipment   h.  Paper used by commercial printer   i.  Entertainment expenses for sales representatives   j.  Protective glasses for factory machine operators   k.  Sales commissions   l.  Cost of hogs for meat processor   m.  Cost of telephone operators for a toll-free hotline to help customers operate products   n.  Hard drives for a microcomputer manufacturer   o.  Lumber used by furniture manufacturer   p.  Wages of a machine operator on the production line   q.  First-aid supplies for factory workers   r.  Tires for an automobile manufacturer   s.  Paper used by Computer Department in processing various managerial reports   t.  Seed for grain farmer   u.  Health insurance premiums paid for factory workers   v.  Costs of operating a research laboratory   w.  Costs for television advertisement   x.  Executive bonus for vice president of marketing

Q: For each of the following costs, check the type that most likely apply (both variable and fixed…

A: VARIABLE COST: A variable cost is an expense that rises or falls in direct proportion to production…

Q: -.In a department store, wages pa sales representatives are classified Select one: A. Direct labour…

A: Direct labor states to the salaries as well as wages paid to the workers that are attributed…

Q: Prime vs conversion cost. For each of the following costs incurred in a manufacturing operation,…

A: Prime costs : It refers to the three important elements of costs: direct materials, direct labor and…

Q: Which of the following is a cost pool used with the activity-based costing method? a. total factory…

A: The ABC cost system or activity based system is used to allocate the overhead costs on the basis of…

Q: Listed below are costs found in various organizations. Required: For each cost item, Indicate…

A: Businesses can determine which expenses are stable such as unaffected by changes in production…

Q: In Process Costing, before you can calculate the cost to produce a product.      you must determine…

A: In process costing, to find out the cost of producing a product, you need to determine the…

Q: Classifying Costs as Materials, Labor, or Factory Overhead Indicate whether the following costs of…

A: The cost applied in production can be classified as Direct materials, direct labor and factory over…

Q: Indicate with a check mark whether each of the following would be a product cost or a period cost…

A: Product cost is any cost incurred for the production of the products , thus all costs up to the time…

Q: Standard costs are used in companies for a variety of reasons. Which of the following is a benefit…

A: The question is asking about the benefits of using standard costs in a company. Standard costs are…

Q: The cost of a manufactured product (product cost) generally consists of which of the following?…

A: Product Costs - Product cost are those cost which are incurred to manufacture the product. Other…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.