ACC202-HW2 - Manufacturing overhead includes all costs of...

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Problems 2-1, direct materials, direct labor, and manufacturing overhead 2-2, Direct materials are those materials that become an integral part of the finished product and whose costs can be conveniently traced to the finished product. Indirect materials are materials such as solder and glue. Direct labor consists of labor costs that can be easily traced to individual units of product. Indirect labor is labor costs that cannot be physically traced to the creation of products, or that can be traced only at great cost and inconvenience.
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Unformatted text preview: Manufacturing overhead includes all costs of manufacturing except direct materials and direct labor. Exercise 2-7 Item Differential Cost Opportunity cost Sunk cost Cost of the new flat-lanel displays X Cost of the old computer terminals X Rent on the space occupied by the registration desk X Wages of registration desk personnel X Benefits from a new freezer X Costs of maintaining the old computer terminals X Cost of removing the old computer terminals X Costs of existing registration desk wiring X...
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This note was uploaded on 05/24/2010 for the course ACC 202 taught by Professor Sue during the Summer '10 term at Michigan State University.

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