1. An airline manufacturer incurred the following costs last month (in thousands of dollars):

The table lists the following cost in dollars:

Airplane seats - 240

Production supervisors' salaries - 100

Depreciation on forklifts in factory - 40

Machine lubricants - 35

Factory janitors' wages - 15

f. Assembly workers' wages - 620

Property tax on corporate marketing office - 30

Plant utilities - 120

Cost of warranty repairs - 260

Machine operators' health insurance - 10

Depreciation on administrative offices - 60

Cost of designing new plant layout - 170

Jet engines - 1,400

The table lists the following:

1. Requirements
   1. 1. Assuming the cost object is an airplane, classify each cost as one of the following: direct material (DM), direct labor (DL), indirect labor (IL), indirect materials (IM), other manufacturing overhead (other MOH), or period cost. (Hint: Set up a column for each type of cost.) What is the total for each type of cost?
   2. 2. Calculate total manufacturing overhead costs.
   3. 3. Calculate total product costs.
   4. 4. Calculate total prime costs.
   5. 5. Calculate total conversion costs.
   6. 6. Calculate total period costs.

Answer rating: 100% (QA)

To classify each cost and calculate the totals lets categorize the costs based on their nature 1 Cost Classification Airplane seats Direct material DM ... View the full answer