Sorter has the following costs:

Required: An analysis of Sorter’s costs between:

(i) Direct materials

(ii) Direct labour

(iii) Production overheads

(iv) Administrative expenses

(v) Selling and distribution costs

Transcribed Image Text:

(a) Machine workers' wages (b) Cost clerks' wages (c) Purchase of raw materials (d) Machine repairs (e) Finance director's salary (f) Office cleaners (g) Delivery van staff's wages (h) Managing director's car expenses (i) Depreciation on office furniture (j) Computer running expenses for office (k) Loan interest (1) Auditors' fees (m) Depreciation on machinery (n) Advertising costs (o) Electricity for machines (p) Bank charges