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Questions and Exercises

Questions and Exercises - e Depreciation on sewing machines...

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1. How is product cost information used by managers? Managers can use cost information to identify areas for cost improvement and identify unusual trends. 2. Ex. 10-2 a. Wages paid to packaging department employees- direct labor costs b. Maintenance supplies- direct material costs c. Plant manager salary for the Morristown, Tennessee, toothpaste plant- factory overhead cost d. Packaging materials- direct labor costs e. Depreciation on production machinery- factory overhead cost f. Salary of process engineers- direct labor costs g. depreciation on the Clarksville, Indiana, soap plant- factory overhead cost h. resins for soaps and shampoo products- direct material costs i. scents and fragrances- direct material costs j. wages of production line employees- direct labor costs 3. Ex. 10-4 a. Sales commissions- period cost b. Advertising expenses- period cost c. Fabric used during production- product cost d. Property taxes on factory bulding and equipment- product cost
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Unformatted text preview: e. Depreciation on sewing machines- product cost f. Factory janitorial supplies- product cost g. Depreciation on office equipment- period cost h. Wages of sewing machine operators- product cost i. Repairs and maintenance costs for sewing machines- product cost j. Salary of production quality control supervisor- product cost k. Salaries of distribution center personnel- period cost l. Research and development costs- period cost m. Oil used to lubricate sewing machines- product cost n. Corporate controller’s salary- period cost o. Utility costs for office building- product cost p. travel costs of salespersons- product cost q. Factory supervisors salaries- period cost 4. Ex. 10-7 a. Cost of goods sold $785,000 b. Direct materials cost $565,000 c. Direct labor cost $629,500 5. Ex. 10-15 a. 27.13 per direct hour...
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