#1 is direct cost or indirect cost. #2 is all multiple choice

Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics Required: For each of the following costs incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object. Cost Direct Cost Indirect Cost Direct Cost Ex 1. 2 3 Catered food served to patients The wages of pediatric nurses Prescription drugs Heating the hospital The salary of the head of pediatrics The salary of the head of pediatrics Hospital chaplain's salary Labtests by outside contractor Lab tests by outside contractor Cost Object A particular patient The pediatric department A particular patient The pediatric department The pediatric department A particular pediatric patient A particular patient A particular patient A particular department 5 6 7 8 The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that the company incurs. Required: For each cost indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, selling or an administrative cost 1. The cost of a hard drive installed in a computer. O Direct labor cost O Direct materials cost O Manufacturing overhead cost O Selling cost O Administrative cost 2. The cost of advertising in the Puget Sound Computer User newspaper. O Direct labor cost O Direct materials cost O Manufacturing overhead cost O Selling cost Administrative cost 3. The wages of employees who assemble computers from components Direct labor cost Direct materials cost Manufacturing overhead cost Selling cost Administrative cost 4. Sales commissions paid to the company's salespeople. O Direct labor cost O Direct materials cost O Manufacturing overhead cost O Selling cost O Administrative cost 5. The salary of the assembly shop's supervisor. ost O Direct labor O Direct materials cost O Manufacturing overhead cost Selling cost O Administrative cost 6. The salary of the company's accountant O Direct labor cost O Direct materials cost O Manufacturing overhead cost Selling cost O Administrative cost 7. Depreciation on equipment used to test assembled computers before release to customers. O Direct labor cost O Direct materials cost O Manufacturing overhead cost O Selling cost O Administrative cost