Solutions+for+Homework+2

Solutions+for+Homework+2 - Exercise 2-1 1. The wages of...

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Exercise 2-1  1. The wages of employees who build the sailboats: direct labor  cost. 2. The cost of advertising in the local newspapers: marketing  and selling cost. 3. The cost of an aluminum mast installed in a sailboat: direct  materials cost. 4. The wages of the assembly shop’s supervisor: manufacturing  overhead cost. 5. Rent on the boathouse: a combination of manufacturing  overhead, administrative, and marketing and selling cost. The  rent would most likely be prorated on the basis of the amount  of space occupied by manufacturing, administrative, and  marketing operations. 6. The wages of the company’s bookkeeper: administrative cost. 7. Sales commissions paid to the company’s salespeople:  marketing and selling cost. 8. Depreciation on power tools: manufacturing overhead cost.
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Exercise 2-2   Product  (Inventoriable)  Cost Period  Cost 1. The cost of the memory chips used in a  radar set. .................................................... X 2. Factory heating costs. ................................... X 3. Factory equipment maintenance costs. ........ X 4. Training costs for new administrative  employees. ................................................. X 5. The cost of the solder that is used in  assembling the radar sets. ......................... X 6. The travel costs of the company’s  salespersons. ............................................. X 7. Wages and salaries of factory security  personnel. .................................................. X 8. The cost of air-conditioning  executive offices. ........................................ X 9. Wages and salaries in the department that  handles billing customers. .......................... X 10. Depreciation on the equipment in the fitness  room used by factory workers. ................... X   11. Telephone expenses incurred by factory  management. ............................................. X 12. The costs of shipping completed radar sets  to customers. .............................................. X 13. The wages of the workers who assemble  the radar sets. ............................................ X 14. The president’s salary. .................................. X 15. Health insurance premiums for factory  personnel. .................................................. X
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Exercise 2-3  Mountain High Income Statement Sales. ................................................................ $3,200,000
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This note was uploaded on 08/18/2008 for the course MGMT 30B taught by Professor Tian during the Winter '08 term at UC Irvine.

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Solutions+for+Homework+2 - Exercise 2-1 1. The wages of...

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