Review the following resource costs and MATCH it to the correct cost category: a product cost (direct materials, direct labour, manufacturing overhead) or a period cost (selling expense, administrative expense).
Question 3 options:
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Cost of hall rental, food and decorations for all factory employees for Canada Day party.
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Wages paid to workers who maintain the factory equipment.
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Cloth to cover the mattress springs.
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Power to operate drills used to create holes in mattress frames.
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Cloth rags used to wipe the excess dust off the mattresses.
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Wages paid to workers who assemble the mattresses.
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Depreciation on forklift to move partially completed goods in the factory.
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Straight line depreciation on the sales office copier.
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Fuel for forklift used to move material in factory.
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Salary of President's secretary.
1.
Direct material
2.
Direct labour
3.
Manufacturing overhead
4.
Selling expense
5.
Administrative expense