Question

The following costs are for Booth, Inc., a manufacturer of labels used in the packaging of a variety of products. Classify the costs as one of the following four options by placing the number of the correct answer in the space provided.
1. Direct materials cost
2. Direct labor cost
3. Manufacturing overhead cost
4. Selling and administrative cost
________ A. Salary of production foreman
________ B. Property taxes on corporate office building
________ C. Vacation pay for factory employees
________ D. Salespersons’ commissions
________ E. Advertising expense
________ F. Boxes used to ship finished labels
________ G. Cost of electricity to operate factory machinery
________ H. Income tax expense
________ I. Insurance on manufacturing facilities
________ J. Wages paid to machine operator
________ K. Paper for labels
________ L. Rent on finished goods warehouse
________ M. Depreciation on the factory building
________ N. Salary of the corporate controller
________ O. Ink used in printing labels


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  • CreatedMarch 25, 2015
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