Question
TEB Tree Service, LLC (hereafter TEB), provides and plants trees for individual homeowners and builders. Once a customer orders from a catalog, TEB buys trees
TEB Tree Service, LLC (hereafter TEB), provides and plants trees for individual homeowners and builders. Once a customer orders from a catalog, TEB buys trees from an unrelated nursery, brings them to the customers location, tests the soil, adjusts the soil as necessary using fertilizer, and plants the tree. Member of the tree planting crew are trained for four hours at company headquarters at minimum wage and then paid based on the number of trees planted by the crew.
TEB provides high-deductible health insurance and disability insurance for all its employees.
The cost object is the customer, whether the customer is an individual or a builder. Indicate whether the following costs are direct or indirect with respect to the customer cost object. Assume all amounts are material (i.e., do not assume a cost is immaterial and, therefore, the answer does not matter).
Trees
Direct
Indirect
No answer text provided.
No answer text provided.
Soil testing supplies
Direct
Indirect
No answer text provided.
No answer text provided.
Employee health and workman's compensation insurance
Indirect
Direct
No answer text provided.
No answer text provided.
Headquarters building rent
Indirect
Direct
No answer text provided.
No answer text provided.
Company accountant's salary
Indirect
Direct
No answer text provided.
No answer text provided.
Training of the tree planting crew
Indirect
Direct
No answer text provided.
No answer text provided.
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