Assignment Details This list contains costs that various organizations incur; they fall into three categories: direct materials (DM), direct labor (DL), or overhead (OH). Classify each of these items as direct materials, direct labor, or overhead, and provide the rationale for your classification decision. Glue used to attach labels to bottles containing a patented medicine. Compressed air used in operating paint sprayers for Student Painters, a company that paints houses and apartments. Insurance on a factory building and equipment. A production department supervisor's salary. Rent on factory machinery. Iron ore in a steel mill. Oil, gasoline, and grease for forklift trucks in a manufacturing company's warehouse. Services of painters in building construction. Cutting oils used in machining operations. Cost of paper towels in a factory employees' washroom. Payroll taxes and fringe benefits related to direct labor. The plant electricians' salaries. Crude oil to an oil refinery. Copy editor's salary in a book publishing company.

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Paragraph on the three main categories of costs that organizations incur: direct materials (DM), direct labor (DL), or overhead (OH). This paragraph should contain scholarly research that supports the definitions of costs. The paragraph should be at least three sentences in length, however an introductory paragraph would ideally four to five sentences.

Classification

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One paragraph to discuss each of the following expenses. The paragraph should be at least three sentences in length. Paragraph should classify the expense as DM, DL, or OH. Justification for classification should be provided.

• Glue used to attach labels to bottles containing a patented medicine.
• Compressed air used in operating paint sprayers for Student Painters, a company that paints houses and apartments.
• Insurance on a factory building and equipment.
• A production department supervisor's salary.
• Rent on factory machinery.
• Iron ore in a steel mill.
• Oil, gasoline, and grease for forklift trucks in a manufacturing company's warehouse.
• Services of painters in building construction.
• Cutting oils used in machining operations.
• Cost of paper towels in a factory employees' washroom.
• Payroll taxes and fringe benefits related to direct labor.
• The plant electricians' salaries.
• Crude oil to an oil refinery.
• Copy editor's salary in a book publishing company.

Example:

Glue used to attach labels to bottles containing a patented medicine.

Glue used to attach labels to bottles containing a patented medicine would be classified as overhead (OH). The cost of glue do not relate to labor, so direct materials and overhead are the only choices for this item. However, this cost item is usually classified as overhead because the cost of the glue may not be economically feasible to measure as direct material.

Note: Please delete all red text provided in the template before submitting the assignment.

Paragraph should summarize why it is important to understand the different classifications of cost and how this benefits an organization. This paragraph should contain scholarly research that supports the definitions of costs. The paragraph should be at least three sentences in length, however an introductory paragraph would ideally four to five sentences.

References

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Double space do not indent, but do alphabetize. Use APA style. If the citation carries over to the next line, the lines will automatically be in hanging indent when you use the following template (overwrite the first two and when you hit twice after that, the references will fall in hanging indent naturally).

Submitting your assignment in APA format means, at a minimum, you will need the following:

• Title page: Remember the running head. The title should be in all capitals.
• Length: 3 pages minimum
• Body: This begins on the page following the title page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 3 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
• Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.
• Title page: Remember the running head. The title should be in all capitals.
• Length: 3 pages minimum
• Body: This begins on the page following the title page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 3 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
• Academic Integrity/Honor Code ViolationThe wording of this question may indicate that you intend to submit a tutor's work as your own. Please revise accordingly.

Answer rating: 100% (QA)

Direct materials DM direct labor DL and overhead OH are the three main categories of costs that organizations incur in the production of goods and ser... View the full answer