Question
Following is a list of costs incurred by a peanut butter manufacturing company. Classify each cost as either direct material (DM) , direct labor (DL)
Following is a list of costs incurred by a peanut butter manufacturing company. Classify each cost as either direct material (DM), direct labor (DL), manufacturing overhead (MO), or period cost (P) by filling in the blank to the left of the cost. Also, classify each cost as a variable (V) or a fixed (F) cost by filling in the blank to the right of the cost.
Cost Classification Cost Behavior
_________ Wages paid to production workers __________
__________ Utilities in the office __________
__________ Straight line depreciation on machinery in factory__________
__________ Peanuts __________
__________ Chief Financial Officers salary __________
__________ Rent on factory building __________
__________ Rent on office equipment __________
__________ Factory maintenance workers wages __________
__________ Utilities in the factory __________
__________ Advertising __________
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