1-

Indicate whether the following cost (which is associated with production) would be classified as direct materials, direct labor, or manufacturing overhead: Salaried supervisor responsible for several product lines.

Select one:

a. direct materials

b. direct labor

c. manufacturing overhead

2-

For the following cost-pool activity, choose the most appropriate cost driver: Testing finished products.

Select one:

a. Number of purchase orders processed, or units of material purchased (for example, pounds of material purchased)

b. Number of inspections, or units of material inspected

c. Units of raw materials stored, or storage space consumed

d. Number of machine hours

e. Number of machine setups

f. Number of tests, or number of products tested

3-

Determine if the following activity (for a company that manufactures kayaks) is value added or non-value added: Scrapping defective materials.

Select one:

a. value added

b. non-value added