1. The only difference between variable costing and throughput costing is with respect to the treatment of direct labor costs.

True or 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.