Question

1. List examples of manufacturing and non-manufacturing costs for the following manufacturing companies (One product was chosen per company).

Write : Direct Material (2 or more), Direct Labor (1 or more if applicable), Manufaturing Overhead (3 or more); Non-Manufacturing (3 or more) for each product and company

a. Company: Hewlett-Packard. Product: printers

b. Company: KDD. Product: Cooking Cream

c. Company: Nike. Product: Training shoes

Answer 1

DIRECT MATERIAL-Direct Material are those materials which are used in the production of the the product and which are directly identified with the product

DIRECT LABOUR-Direct Labours refers to wages and salaries which are directly attributed to a specific finished product.

MANUFACTURING OVERHEAD-It is all indirect cost which are incurred during the production of a product.This overhead is applied to the unit produced within a reporting period

NON MANUFACTURING OVERHEAD- Itis a overhead that are incurred outside of a company's manufacturing operations.These are generally called as Selling,General and Administrative Expenses.

COMPANY	PRODUCT	DIRECT MATERIAL	DIRECT LABOUR	MANUFACTURING OVERHEAD	NON MANUFACTURING OVERHEAD
Hewlett-Packard	Printers	1)Plastics 2)Glass Filled Polyamide	1)Working hours 2)Overtime working hours 3)Payroll taxes 4)Medicare	1)Lighting and Heating Cost 2)Property taxes, 3)Insurance 4)Depreciation of the Company's Asset	1)Bad Debts 2)Audit and legal fees 3)Corporate Salaries
KDD	Cooking cream	1)Milk 2)Sugar	1)Workers working hours and overtime working hours 2)Employment insurance	1)Salaries of maintenance staff 2)Property taxes, 3)Lighting and Heating Cost	1)Interest on business Loan 2)Marketing and Advertisement 3)Supplies for the offices
Nike	Training shoes	1)Leather 2)Cotton	1)Working hours 2)Employment insurance 3)Workers overtime hours worked	1)Production supervisor salary 2)Rent and Rates 3)Repair and Maintenance	1)Marketing and Advertisement 2)Bad Debts 3)Interest on BusinessLoan

plz upvote if u find the solution to be helpful