Hummer Company uses manufacturing cells to produce its products (a cell is a manufacturing unit dedicated to
Question:
Assume that all or a portion of the following costs must be assigned to the cell.
a. Salary of cell supervisor
b. Power to heat and cool the plant in which the cell is located
c. Materials used to produce the motors
d. Maintenance for the cell’s equipment (provided by the maintenance department)
e. Labor used to produce motors
f. Cafeteria that services the plant’s employees
g. Depreciation on the plant
h. Depreciation on equipment used to produce the motors
i. Ordering costs for materials used in production
j. Engineering support (provided by the engineering department)
k. Cost of maintaining the plant and grounds
l. Cost of the plant’s personnel office
m. Property tax on the plant and land
Required:
Classify each of the costs as a direct cost or an indirect cost to the motor manufacturing cell.
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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