acct - ch 2 Manufacturing cost has three categories Direct Materials Direct Labor Direct labor also called touch labor Manufacturing overhead

acct - ch 2 Manufacturing cost has three categories Direct...

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ch 2 Manufacturing cost has three categories: Direct Materials, - Direct Labor,- - Direct labor also called touch labor Manufacturing overhead - Manufacturing overheading includes indire mater/ indirect labor maintenance/repairs Indirect labo r -labor cost is manufacturing overhead Non Manufacturing cost - selling cost and administrative cost - selling cost: all cost to get customers money marketing,shipping,sales salaries - administrative cost: the general management - general acct. executive compensation Raw materials any materials that go into the final product; raw materials can include direct or indirect materials: direct materials ex. tires indirect materials ex. glue i.e. manufacturing overhead Product cost - manufacturing and non manufacturing cost direct materials/ direct labor/ manufacturing overhead usually in the inventory section of the balance sheet Period cost- selling and administrative cost ex. rental cost,advertising/ etc. variable cost- fixed cost- remains constant, in total, regardless of changes in the levels of activity Examples include straight-line depreciation, insurance, rent, and administrative salaries
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x= the number of activitiesin a small manufacturing facility, one welder is needed for every 200 hours of machine-hours or fewer in a month. The welder is paid a monthly salary of $2,500. If the total monthly requirement is 1,300 machine-hours, what would be the total salaried employee expense?
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