In June 2013, Carolyn Gardens incurred the following costs. One of several projects in process during the month was a landscaped terrace for Pam Beattie. Relative to the Beattie landscaping job, classify each of the costs as direct material, direct labor, or overhead. The terrace required two days to design and one five-day work week to complete. Some costs may not fit entirely into a single classification; in such cases, and if possible, provide a systematic and rational method to allocate such costs.
Mulch purchased for Beattie’s landscaping.....................$ 320
June salary of Z. Trumble, the landscape designer, who worked 20 days in June....3,000
Construction permit for Beattie’s landscaping........................95
Gardeners’ wages; all worked on Beattie’s landscaping; gardeners work eight
hours per day, five days per week; there were 20 working days in June.......3,840
June depreciation on the company loader, driven by a gardener and used on
Beattie’s landscaping one day.............................................200
Landscaping rock purchased for Beattie’s landscaping...............1,580
June rent on Carolyn Gardens offices, where Z. Trumble has an office that
occupies 150 square feet of 3,000 total square feet................2,400
June utility bills for Carolyn Gardens.................................1,800
Plants and pots purchased for Beattie’s landscaping............................1,950