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B C COST CLASSIFICATION Instructions: for each cost listed below, indicate its cost classification. Label each cost as DIRECT MATERIAL, DIRECT LABOR, FACTORY OVERHEAD or

B C COST CLASSIFICATION Instructions: for each cost listed below, indicate its cost classification. Label each cost as DIRECT MATERIAL, DIRECT LABOR, FACTORY OVERHEAD or PERIOD COST Tony's T-Shirts manufactures T-Shirts for tourists who visit Seattle. How would you classify each cost below? 1 Cost of cotton fabric that goes into the T-shirts. 2 Cost of depreciation on the factory sewing machines. Choose Cost Classification: Choose Cost Classification: 3 Cost of advertising radio advertising for Tony's T-Shirt Store. Choose Cost Classification: 4 Factory supervisor's salary. 5 Depreciation on the salesman's car. Choose Cost Classification: Choose Cost Classification: 6 Salary cost of security officer who patrols the factory at night. Choose Cost Classification: 7 Cost of paint used to decorate the t-shirts. Choose Cost Classification: 8 Wages of sewing machine operators who construct the t-shirts. Choose Cost Classification: Choose Cost Classification: Choose Cost Classification: 9 The wages of the high-school student who sweeps the factory. 10 Depreciation on the company president's limousine. 11 Property taxes on the factory building. 12 Depreciation on the factory supervisor's computer. 13 Cost of electricity used to operate the sewing machines in the factory. 14 Cost of t-shirt size tag, considered an indirect material. 15 Cost of heating and lighting in the factory. Choose Cost Classification: Choose Cost Classification: Choose Cost Classification: Choose Cost Classification: Choose Cost Classification: D

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