ndicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a. Depreciation of robotic assembly line equipment b. V8 automobile engine c. Steering wheel d. Wheels e. Painting safety masks for employees working in the paint room f. Salary of test driver g. Glass used in the vehicle’s windshield h. Wages of assembly line worker
ndicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a. Depreciation of robotic assembly line equipment b. V8 automobile engine c. Steering wheel d. Wheels e. Painting safety masks for employees working in the paint room f. Salary of test driver g. Glass used in the vehicle’s windshield h. Wages of assembly line worker
ndicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a. Depreciation of robotic assembly line equipment b. V8 automobile engine c. Steering wheel d. Wheels e. Painting safety masks for employees working in the paint room f. Salary of test driver g. Glass used in the vehicle’s windshield h. Wages of assembly line worker
Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost:
Cost
Classification
a. Depreciation of robotic assembly line equipment
b. V8 automobile engine
c. Steering wheel
d. Wheels
e. Painting safety masks for employees working in the paint room
f. Salary of test driver
g. Glass used in the vehicle’s windshield
h. Wages of assembly line worker
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
Expert Solution
Step 1
Direct material indicates the cost spend on material consumed in the product. Direct labor cost indicates the cost spend on the labor hours consumed in the production process. Factory overhead cost indicates the cost which is difficult to identify in the product, such as supervisor salary, electricity bills, and so on.
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