10. A clothing manufacturer has the costs listed. Determine if each would be considered a direct or indirect cost if the cost object is an individual shirt.
a. Cost of fabric
b. Salary of clothing designer
c. Cost of buttons
11. During the production of its new broom, a manufacturer incurs each of the following costs. Would each cost be considered a direct or indirect cost if the cost object is an individual broom?
a. Electricity in production plant
b. Cost of plastic for handle
c. Cost of labor by production employees, billed at an hourly rate
12. Would each of the following costs be considered a direct or indirect cost for an individual lamp of a manufacturer?
a. Research and design on the materials used for the line of lamps
b. Cost of fabric for the lamp shade
c. Advertising expense for the line of lamps
| Direct Cost: | Direct Costs are traceable to the production of a specific good or service. | ||
| Indirect Cost: | Indirect costs go beyond the expenses associated with creating a particular product to include price of maintaining the entire company | ||
| Answer basis the above definations: | |||
| 10 | Cost of Fabric | Direct | |
| Salary | Indirect | ||
| Cost of Button | Direct | ||
| 11 | Electricity | Direct | |
| Plastic | Direct | ||
| Labor | Direct | ||
| 12 | Reserch | Indirect | |
| Fabric | Direct | ||
| Advertising | Indirect | ||
10. A clothing manufacturer has the costs listed. Determine if each would be considered a direct...
Exercise 14-6 Cost classification LO C3 Tesla, a vehicle manufacturer, incurs the following costs. (1) Classify each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead, and then as a prime and/or conversion cost. (2) Classify each product cost as either a direct cost or an indirect cost using the product as the cost object. (Leave no cell blank if there is no effect select "NA...
Exercise 14-6 Cost classification LO C3 Tesla, a vehicle manufacturer, incurs the following costs. (1) Classify each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead, and then as a prime and/or conversion cost. (2) Classify each product cost as either a direct cost or an indirect cost using the product as the cost object. (Leave no cell blank if there is no effect select "NA...
S2-4 Classify costs as direct or indirect (Learning Objective 3) Classify each of the following costs as a direct cost or an indirect cost, assuming that the cost object is the Juniors Department (clothing and accessories for teenage and young women) in the Stow Kohl's department store. (Kohl's is a chain of department stores and has stores located across the United States.) a. Juniors Department sales clerks b. Cost of Juniors clothing c. Cost of hangers used to display the...
Seymour Clothing Co. manufactures a variety of clothing types for distribution to several major retail chains. The following costs are incurred in the production and sale of blue jeans: Required: Identify each cost listed below as variable costs, fixed costs, or mixed cost. a. Shipping boxes used to ship orders b. Consulting fee of $200,000 paid to industry specialist for marketing advice c. Straight-line depreciation on sewing machines d. Salesperson's salary, $10,000 plus 2% of the total sales e. Fabric...
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From a consumer perspective, would you want to have to go to each clothing manufacturer directly versus being able to have many options available through one store? And from a clothing manufacturer's perspective would it be cost-effective to ship out small orders to individual consumers, process payments, and fulfillment? Many customers are not trained to look for free shipping and quick shipping. Quick shipping is expensive, and free shipping means the seller eats the cost.
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Grand Clothing is a manufacturer of designer suits. The cost of each suit is the sum of three variable costs (direct material costs, direct manufacturing labor costs, and manufacturing overhead costs) and one fixed-cost category (manufacturing overhead costs). Variable manufacturing overhead cost is allocated to each suit on the basis of budgeted direct manufacturing labor-hours per suit. For June 2013, each suit is budgeted to take 4 labor-hours. Budgeted variable manufacturing overhead cost per labor-hour is $14. The budgeted number...
Opulence Clothing is a manufacturer of designer suits. The cost of each sut is the sum of three variable costs (direct material costs, direct manufacturing labor costs, and manufacturing overhead costs) and one fixed cost category transacturing overhead costs) Click the icon to view additional information) - X More Info Read the Requirement 1. Compute the flexible budget variance, the spending variance, and the Begin by computing the following amounts for the variable manufacturing overhead Actualinput ty Actual Costs Allocated...