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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