INSTRUCTIONS: Putting an X in the appropriate spot, classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs. Other costs have been provided for you. **K-9 Grooming & Camp****MILESTONE 1: Cost Classification Exercise****Instructions:**Place an "X" in the appropriate spot to classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs. The fixed and variable cost classifications have already been provided. For more information, see Chapter 5.| Item/Cost | Direct Material | Direct Labor | Overhead | Period Costs | Fixed | Variable ||-------------------------------|-----------------|--------------|----------|--------------|-------|----------|| Groomer | | X | | | | X || Day care attendant | | X | | | | X || Receptionist | | X | | | | X || Kennel attendant | | X | | | | X || Food and water bowls | X | | | | X | || Depreciation on kennels | | | X | | X | || Rent | | | X | | X | || Utilities and insurance | | | X | | X | || Grooming tub | X | | | | X | || Depreciation on heating system| | | X | | X | || Clippers | X | | | | X | || Shampoo (1/2-gallon pail) | X | | | | | X || Towels | X | | | | | X || Shampoos (4 inch straight, ear & nose)| X | | | | | X || Toys used in day care | X | | | | | X || Cleaning products (used throughout) | X | | | | | X || Dryer | | | X | | X | |**Explanation of Graph/Diagram:**This table is designed to classify various costs associated with K-9 Grooming & Camp operations. Each cost is evaluated for

Direct Materials refers to the raw materials used to manufacture a product. Normally all the direct…

Answered: Direct Material, Direct Labor,…

Business

Accounting

Direct Material, Direct Labor, Overhead, or Period Costs. Other costs have been provided for you.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Question

INSTRUCTIONS:
Putting an X in the appropriate spot, classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs. Other costs have been provided for you.

**K-9 Grooming & Camp**

**MILESTONE 1: Cost Classification Exercise**

**Instructions:**
Place an "X" in the appropriate spot to classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs. The fixed and variable cost classifications have already been provided. For more information, see Chapter 5.

| Item/Cost | Direct Material | Direct Labor | Overhead | Period Costs | Fixed | Variable |
|-------------------------------|-----------------|--------------|----------|--------------|-------|----------|
| Groomer | | X | | | | X |
| Day care attendant | | X | | | | X |
| Receptionist | | X | | | | X |
| Kennel attendant | | X | | | | X |
| Food and water bowls | X | | | | X | |
| Depreciation on kennels | | | X | | X | |
| Rent | | | X | | X | |
| Utilities and insurance | | | X | | X | |
| Grooming tub | X | | | | X | |
| Depreciation on heating system| | | X | | X | |
| Clippers | X | | | | X | |
| Shampoo (1/2-gallon pail) | X | | | | | X |
| Towels | X | | | | | X |
| Shampoos (4 inch straight, ear & nose)| X | | | | | X |
| Toys used in day care | X | | | | | X |
| Cleaning products (used throughout) | X | | | | | X |
| Dryer | | | X | | X | |

**Explanation of Graph/Diagram:**
This table is designed to classify various costs associated with K-9 Grooming & Camp operations. Each cost is evaluated for

Definition Definition Indirect costs incurred while producing goods or services. Overhead costs cannot be directly attributed to products or services. Overhead includes indirect material cost, indirect labor cost, rent, utilities expenses, and depreciation. Since these costs directly affect the profitability of a company, managing overhead becomes an important task for management.

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