(Direct vs. indirect costs) Modern Cutlery Inc. manufactures kitchen knives. Following are some costs incurred in the...
Question:
(Direct vs. indirect costs) Modern Cutlery Inc. manufactures kitchen knives. Following are some costs incurred in the factory in 1997 for knife production:
a. What is the direct material cost for 1997?
b. What is the direct labor cost for 1997?
c. What is the indirect material and total indirect labor overhead cost for 1997?
35.(Direct vs. indirect costs) Mountain State University’s College of Business has five departments: Accounting, Finance, Management, Marketing, and Decision Sci¬ ences. Each department chairperson is responsible for the department’s budget preparation. Indicate whether each of the following costs incurred in the Mar¬ keting Department is direct or indirect to the department:
a. Chairperson’s salary
b. Cost of computer time of campus mainframe used by members of the department
c. Marketing faculty salaries
d. Cost of equipment purchased by the department from allocated state funds
e. Cost of travel by department faculty paid from externally generated funds contributed directly to the department
f. Cost of secretarial salaries (secretaries are shared by the entire college)
g. Depreciation allocation of the college building cost for the number of offices used by department faculty h. Cost of periodicals/books purchased by the department.LO1
Step by Step Answer:
Cost Accounting Traditions And Innovations
ISBN: 9780538880473
3rd Edition
Authors: Jesse T. Barfield, Cecily A. Raiborn, Michael R. Kinney