Question
Questions 8-14 relate to Sherri's visit to Rick's factory. Rick invited Sherri to lunch and a tour of the factory. Rick's current costs of production
Questions 8-14 relate to Sherri's visit to Rick's factory. Rick invited Sherri to lunch and a tour of the factory. Rick's current costs of production include the cost of the cherry wood, rent on factory space, depreciation and maintenance on the production equipment, utilities and the cost of skilled wood workers who are working on assembly and finishing of the credenzas. Rick has an experienced salesforce of two who are paid a salary plus commission for each credenzas sold. After lunch Rick set up a meeting with the plant controller for a overview of costs. The controller mentioned that the company rents office space for the sales and administration operations. Required: Classify each of the following costs into one of these categories: direct materials, direct labor, overhead, period costs.
8. The cost of salesforce would most likely be:
a. direct materials
b. direct labor
c. overhead
d. period cost
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started