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ch 2Manufacturing cost has three categories:●Direct Materials, -●Direct Labor,--Direct labor also called touch labor ●Manufacturing overhead-Manufacturing overheading includes indire mater/ indirect labor maintenance/repairsIndirect labor -labor cost is manufacturing overheadNon 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 compensationRaw materialsany materials that go into the final product; raw materials can include direct or indirect materials: ●direct materialsex. tires●indirect materialsex. glue i.e. manufacturing overheadProduct cost- manufacturing and non manufacturing costdirect materials/ direct labor/ manufacturing overheadusually in the inventory section of the balance sheetPeriod cost-selling and administrative costex. rental cost,advertising/ etc.variable cost-fixed cost-remains constant, in total, regardless of changes in the levels of activityExamples include straight-line depreciation, insurance, rent, and administrative salaries
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?