Hormel Foods Company incurs manufacturing costs during the month

of August. (shown on answer page)

INSTRUCTIONS

For each of the costs listed, determine the type of cost and complete the

following matrix by placing an X mark under the appropriate headings.

				Direct	Direct	Mfg.	Period
				Materials	Labor	Overhead	Costs
a	Advertising
b	Raw materials used directly in product
c	Depreciation on sales department equipmnt
d	Wages for factory maintenance workers
e	Office supplies
f	Property taxes on factory building
g	Indirect materials used in production
h	Assembly line wages
i	Sales commissions
j	Factory utilities
k	Insurance on factory building
l	Depreciation on factory equipment
m	Factory manager's salary