Classify each cost for a book publisher as Direct Material, Direct Labor, Overhead, Selling Expense or General and Administrative Expense.

Question

Paper for book pages

Glue for book covers

Production line worker wages

Marketing posters

Factory Utilities

Depreciation on Office Building

Sales Salaries

Office Supplies Expense

Depreciation on Factory Equipment

Cardboard used for covers

All Answer Choices

A. Direct Material

B. Direct Labor

C. Overhead

D. Selling expense

E. General and Administrative Expense