The administrators of the local hospital are interested in identifying the various costs and expenses that are
Question:
The administrators of the local hospital are interested in identifying the various costs and expenses that are incurred in producing a patient's X-ray. A list of such costs and expenses is presented below:
1. Salaries for the X-ray machine technicians
2. Wages for the hospital janitorial personnel
3. Film costs for the X-ray machines
4. Property taxes on the hospital building
5. The salary of the X-ray technicians' supervisor
6. Electricity costs for the X-ray department
7. Maintenance and repairs on the X-ray machines
8. X-ray department supplies
9. Depreciation on the X-ray department equipment
10. Depreciation on the hospital building
The administrators want these costs and expenses classified as (a) direct materials, (b) direct labour, or (c) service overhead.
Instructions
List the items (1) through (10). For each item, indicate its cost category.
Step by Step Answer:
Managerial Accounting Tools for Business Decision Making
ISBN: 978-1118856994
4th Canadian edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly