Question: Endor Computers assembles custom computers from components supplied by various manufacturers. The company has a factory assembly building and a separate office building located in
Endor Computers assembles custom computers from components supplied by various manufacturers. The company has a factory assembly building and a separate office building located in an industrial park. Listed below are a number of the costs that are incurred at the company. For each cost, indicate whether it would be classified as either a:
Product Cost Direct Materials
Product Cost Direct Labor
Product Cost Manufacturing Overhead
Period Cost Selling, General and Administrative
Group of answer choices
Monthly rent paid for an office building.
[ Choose ] Period Cost Selling, General and Administrative Product Cost Manufacturing Overhead Product Cost Direct Materials Product Cost Direct Labor
The cost of hard drives installed in each computer
[ Choose ] Period Cost Selling, General and Administrative Product Cost Manufacturing Overhead Product Cost Direct Materials Product Cost Direct Labor
The hourly wages of employees who assemble computers from components.
[ Choose ] Period Cost Selling, General and Administrative Product Cost Manufacturing Overhead Product Cost Direct Materials Product Cost Direct Labor
Total wages paid to the companys salespeople. Each is paid a monthly salary plus a commission for each computer sold.
[ Choose ] Period Cost Selling, General and Administrative Product Cost Manufacturing Overhead Product Cost Direct Materials Product Cost Direct Labor
The salary of the assembly shops supervisor
[ Choose ] Period Cost Selling, General and Administrative Product Cost Manufacturing Overhead Product Cost Direct Materials Product Cost Direct Labor
The electricity used in the factory building. The company pays a monthly amount plus a certain amount per kilowatt hour used.
[ Choose ] Period Cost Selling, General and Administrative Product Cost Manufacturing Overhead Product Cost Direct Materials Product Cost Direct Labor
The cost of the motherboard installed in each computer
[ Choose ] Period Cost Selling, General and Administrative Product Cost Manufacturing Overhead Product Cost Direct Materials Product Cost Direct Labor
Monthly rent paid on the factory building
[ Choose ] Period Cost Selling, General and Administrative Product Cost Manufacturing Overhead Product Cost Direct Materials Product Cost Direct Labor
Salary of the administrative assistant to the CFO
[ Choose ] Period Cost Selling, General and Administrative Product Cost Manufacturing Overhead Product Cost Direct Materials Product Cost Direct Labor
Property taxes paid on the factory building
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