Question

Classify the following costs as Direct or Indirect costs.

The foreman’s salary

Supplies

Depreciation of factory equipment

Leather used in the manufacture of shoes

Lubricants for machines

Fringe benefits (an extra benefit supplementing an employee's salary)

Wood in making furniture

Glue in tube making

FICA tax

Janitorial supplies

Classify the following costs as Variable or Fixed in terms of their behavior with respect to volume or level of activity.

Property taxes

Sales agent’s salary

Direct materials

Insurance

Depreciation

Sales agent’s commission

Rent

Classify the following costs as either Manufacturing, Selling, or Administrative expenses in terms of their functions.

Factory supplies

Shipping

Advertising

Employer’s payroll taxes - factory

Employer’s payroll taxes - sales office

Auditing expenses

Rent on general office building

President’s salary

Legal expenses

Samples

Small tools

Sanding materials used in furniture making

Cost of machine breakdown

Classify the following costs as Product Costs or Period Expenses.

                           [ Select ]                       ["Product", "Period", "", ""]          Pears in a fruit cocktail

                           [ Select ]                       ["Product", "Period"]          Fringe benefits - general office

                           [ Select ]                       ["Product", "Period"]         Workers’ compensation

                           [ Select ]                       ["Product", "Period"]         Legal fees

                           [ Select ]                       ["Product", "Period"]         Social Security taxes-direct labor

                           [ Select ]                       ["Product", "Period"]         Insurance on office equipment

                           [ Select ]                       ["Product", "Period"]          Travel expenses

                           [ Select ]                       ["Product", "Period"]         Advertising expenses

                           [ Select ]                       ["Product", "Period"]         Rework on defective products

Answer 1