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Diana and Donna toured Bobby's factory and met with her controller. According to the controller, their production costs include the cost of the wood, depreciation
Diana and Donna toured Bobby's factory and met with her controller. According to the controller, their production costs include the cost of the wood, depreciation on the factory building and equipment, skilled workers paid as direct labor and a factory foreman to supervise the direct laborers. The manufacturing costs also include maintenance and utilities cost. The sales department compensation scheme includes both a salary component and commissions. 6. Required: Skilled laborers would most likely be : a. Product, Prime, Direct Material b. Product, Prime, Direct Labor c. Product, Overhead d. Period, Prime e. Period f. None of the above 7. Required: Wood for the credenza would most likely be : a. Product, Prime, Direct Material b. Product, Prime, Direct Labor c. Product, Overhead d. Period, Prime e. Period f. None of the above 8. Required: Factory utilities would most likely be : a. Product, Prime, Direct Material b. Product, Prime, Direct Labor c. Product, Overhead d. Period, Prime e. Period f. None of the above 9. Required: Compensation for the sales force would most likely be : a. Product, Prime, Direct Material b. Product, Prime, Direct Labor c. Product, Overhead d. Period, Prime e. Period f. None of the above
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