contestada

Identify the following costs as direct materials, direct labor, or factory overhead for a magazine publisher: a. Staples used to bind magazines b. Wages of printing machine employees c. Maintenance on printing machines d. Paper used in the magazine

Respuesta :

anthougo

Answer:

Identification of costs as direct materials, direct labor, or factory overhead for a magazine publisher:

a. Staples used to bind magazines = Factory overhead (indirect materials)

b. Wages of printing machine employees  = Direct labor

c. Maintenance on printing machines = Factory overhead

d. Paper used in the magazine = Direct materials

Explanation:

Costs can be classified according to their nature and according to their behaviors.   For instance direct materials, direct labor, and factory overheads are classified according to their nature primarily.  Then, they are reclassified according to their behavior, that is whether they directly impact the product costs or not.  Since they are classified as variable costs instead of fixed, they directly impact the cost of products.

Otras preguntas