Different Cost Classifications for Different Purposes A machining department 2-3 ot has a number of cost accounts. Some accounts selected at random are repro-

‘ duced below. ;

Use two columns to classify each account 1n two ways:

Direct or Indirect Product Costs D or I Variable or Fixed Costs* SOW oir IP An example would be Foreman’s salary, I, F.

. Cutting tools

. Lubricants

. Patterns

. Nails, rivets, etc.

Factory rent

. Repairs

. Castings

. Freight in on castings

. Material handling 10. 25 percent of superintendent’s salary 11. Direct labor 12. Idle time 13. Overtime premium 14. Employer payroll taxes 15. Compensation insurance 16. Fire insurance on equipment 17. Depreciation—Equipment 18. Property taxes on equipment 19. Blueprints prepared by drafting department OMANAOPWNS Overtime and Fringe Costs A city printing department had a flurry of work during a particular week. The printers’ labor contract provided for payment to workers at a rate of 150 percent of the regular hourly wage rate for all hours worked in excess of 8 per day. Anthony Bardo worked 8 hours on Monday through Wednesday, 10 hours on Thursday, and 9 hours on Friday. His regular pay rate is $12.00 per hour.