Office Supply Company manufactures office furniture. Recently the company decided to develop a formal cost accounting system. The company is currently converting all costs into classifications as related to its manufacturing processes.

Required:

For the following items, label each as being appropriate for

direct cost tracing of the finished furniture,

indirect cost allocation of an indirect manufacturing cost to the finished furniture, or

as a nonmanufacturing item.

Direct CostIndirect CostNonmanu-

ItemTracingAllocationfacturing

21. Carpenter wages________________________

22. Amortization - office building ________________________

23. Glue for assembly________________________

24. Lathe department supervisor________________________

25. Lathe amortization________________________

26. Lathe maintenance________________________

27. Lathe operator wages________________________

28. Lumber________________________

29. Sales staff wages________________________

30. Metal brackets for drawers________________________