The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company.

Required:

For each cost, indicate whether it would most likely be classified as direct labor, direct materials, manufacturing overhead, selling, or an administrative cost.

1.

The cost of a hard drive installed in a computer.

	Direct labor cost
	Direct materials cost
	Manufacturing overhead cost
	Marketing and selling cost
	Administrative cost

2.

The cost of advertising in the Puget Sound Computer User newspaper.

	Direct labor cost
	Direct materials cost
	Manufacturing overhead cost
	Marketing and selling cost
	Administrative cost

3.

The wages of employees who assemble computers from components.

	Direct labor cost
	Direct materials cost
	Manufacturing overhead cost
	Marketing and selling cost
	Administrative cost

4.

Sales commissions paid to the companys salespeople.

	Direct labor cost
	Direct materials cost
	Manufacturing overhead cost
	Marketing and selling cost
	Administrative cost

5.

The wages of the assembly shops supervisor.

	Direct labor cost
	Direct materials cost
	Manufacturing overhead cost
	Marketing and selling cost
	Administrative cost

6.

The wages of the companys accountant.

	Direct labor cost
	Direct materials cost
	Manufacturing overhead cost
	Marketing and selling cost
	Administrative cost

7.

Depreciation on equipment used to test assembled computers before release to customers.

	Direct labor cost
	Direct materials cost
	Manufacturing overhead cost
	Marketing and selling cost
	Administrative cost