Question $4($Mandatory$)(8$ points$)$

The following are a number of resources used by a mattress manufacturer. The cost driver in this factory is the product, the mattress being manufactured. All direct labour is paid on an hourly basis and all other factory workers are salaried $($an annual salary$).$

Review the following resource costs and MATCH it to the correct cost category: a product cost $($direct materials, direct labour, manufacturing overhead$)$ or a period cost $($selling expense, administrative expense$).$

Question $4$ options:

Cloth to cover the mattress springs.

Depreciation on forklift to move partially completed goods in the factory.

Wages paid to workers who maintain the factory equipment.

Cloth rags used to wipe the excess dust off the mattresses.

Fuel for forklift used to move material in factory.

Wages paid to workers who assemble the mattresses.

Salary of President's secretary$.$

Straight line depreciation on the sales office copier.

Power to operate drills used to create holes in mattress frames.

Cost of hall rental, food and decorations for all factory employees for Canada Day party.

$1.$

Direct material

$2.$

Direct labour

$3.$

Manufacturing overhead

$4.$

Selling expense

$5.$

Administrative expense