Question
Tapper Construction Company is composed of two divisions: (1) Home Construction and (2) Commercial Construction. The Home Construction Division is in the process of building
Tapper Construction Company is composed of two divisions: (1) Home Construction and (2) Commercial Construction. The Home Construction Division is in the process of building 12 houses and the Commercial Construction Division is working on three projects. Cost items of the company follow:
a. Depreciation on home office building
b. Salary of corporate office manager
c. Wages of workers assigned to a specific construction project
d. Supplies used by the Commercial Construction Division
e. Labor on a particular house
f. Salary of the supervisor of commercial construction projects
g. Supplies, such as glue and nails, used by the Home Construction Division
h. Cost of building permits
i. Materials used in commercial construction projects
j. Depreciation on home building equipment (small tools such as hammers or saws)
k. Company presidents salary
l. Depreciation on crane used in commercial construction
Required
Identify each cost as being a direct (can be directly traced to that function) or indirect (has to be allocated to that function) cost assuming the cost objects are the individual products (houses or projects).
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