Question
ABC is a manufacturing firm that makes golf clubs. Each club consists of a graphite handle, a cushion gripping pad, and a titanium head. As
ABC is a manufacturing firm that makes golf clubs. Each club consists of a graphite handle, a cushion gripping pad, and a titanium head. As the clubs progress through the assembly process, workers attach the handles to the head and glue (special very expensive glue) the large cushion gripping pad into place. Each club is then placed into a cardboard box. Units are shipped to stores 50 clubs to a pallet. Classify the following costs as one of the following four options:
DM for Direct Materials Cost
DL for Direct Labor Cost
MOH for Manufacturing Overhead Cost
SA for Selling and Administrative Cost
| A. | Cost of the special expensive glue. |
| B. | Cost of graphite handles. |
| C. | Cost of the cushion gripping pad for the handles. |
| D. | Cost of shipping pallets. |
| E. | Cost of cardboard boxes. |
| F. | Depreciation on the delivery trucks. |
| G. | Depreciation on the factory equipment. |
| H. | Office workers salaries. |
| I. | Production supervisors salaries. |
| J. | Rent on the finished goods warehouse. |
| K. | Utilities for the production facilities. |
| L. | Rent on the direct materials warehouse. |
| M. | Utilities for the sales offices. |
| N. | Wages of assembly workers. |
| O. | Wages of sales personnel. |
| P. | Retirement plan benefits for the assembly workers. |
| Q. | Cost of the titanium head. |
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