4. Which of the following is an example of manufacturing overhead costs a. super
ID: 2587707 • Letter: 4
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4. Which of the following is an example of manufacturing overhead costs a. supervisors on the production line b. workers on the production line c. materials that are a significant part of the product d. advertising 5. Conversion costs are a. direct materials plus direct labor b. direct labor plus manufacturing overhead c. expensed as incurred d. direct costs only 6. Which of the following is an example of an administrative period cost? a. travel expense related to sales people b. travel expense related to executive management c. advertising costs for a new product d. rent on the manufacturing facility 7. Direct costs are a. part of making the product, easy to determine how much is required b. direct materials only c. hard to determine for one product d. direct labor only 8. The cost of utilities and telephone would be classified as a. period costs b. manufacturing overhead c. product costs d. it depends on which part of the company the costs are related to 190 9. Selling and administrative costs a. are reported on the income statement as they are incurred b. are part of overhead at the manufacturing plant c. are product costs d. are always higher than the cost to make the product 10. Which of the following is an example of a direct labor cost? a. the worker in the warehouse b. the worker operating the machine that makes the product c. the worker who inspects the product d. the worker who cleans the manufacturing facility ot 11. Why are supervisors on the production line considered indirect labor? a. the supervisor has to touch the product to make the product b. the supervisor is a necessary cost of manufacturing the product and it is difficult to determine how much of the salary is incurred to make one product. c. supervisor salaries are expensed as incurred d. because they are manufacturing overhead Important to note: Anything that occurs at the plant that is not direct material or direct labor is manufacturing overhead. These are all product costs. Anything related to corporate is a period, administrative cost.Explanation / Answer
4)a) Supervisors on the production line 5) b)direct labor plus manufacturing overhead 6) b)travel expense related to executive management 7) a)part of making the product ,easy to determine how much is required 8) d) it depends on which part of the company the costs are related to 9) a)are reported on the income statement as they are incurred 10) b) the worker operating the machine that makes the product 11) b)the supervisor is necessary cost of manufacturing the product and it is difficult to determine how much of the salary is incurred to make one product product Vs period 1) option b period costs,selling 2) option b plastic part in the product easy to track 3) option b) the worker on the production line
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