1. The only difference between variable costing

and throughput costing is with respect to the

treatment of direct labor costs.

• True
• False

2. Which of the following items would be classified as a factory overhead cost for a company that makes patio tables and chairs?

(Select the five that apply.)

• a. Commission on sale of chairs.
• b. Machine lubricants
• c. Cost of factory utilities.
• d. Depreciation on finished goods warehouse.
• e. Depreciation on factory machinery.
• f. Wages of fumiture assemblers.
• g. Fabric used for chair cushions.
• h. Metal tubing used for furniture frames.
• i. Thread used in sewing chair cushions.
• j. Salary of production supervisor.

3. Which of the following items would be classified as a selling and administrative cost for a company that makes patio tables and chairs? (Select the two that apply.)

• a. Machine lubricants.
• b. Fabric used for chair cushions.
• c. Metal tubing used for furniture frames.
• d. Depreciation on finished goods warehouse.
• e. Depreciation on factory machinery.
• f. Cost of factory utilities.
• g. Thread used in sewing chair cushions.
• h. Wages of furniture assemblers.
• i. Commission on sales of chairs.
• j. Salary of production supervisor.

4. Which of the following items would be classified as a direct materials cost for a

company that makes patio tables and chairs?

(Select the (wo that apply.)

• a. Metal tubing used for furniture frames.
• b. Depreciation on factory machinery.
• c. Commission on sale of chairs.
• d. Thread used in sewing chair cushions.
• E. Cost of factory utilities.
• f. Machine lubricants.
• g. Depreciation on finished goods warehouse.
• h. Fabric used for chair cushions.
• i. Wages of furniture assemblers.
• j. Salary of production supervisor.