Tuesday, October 15, 2019

Indicate whether the following costs of Colgate-Palmolive Company, a maker of consumer products, would be classified as direct materials cost

Indicate whether the following costs of Colgate-Palmolive Company, a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost:

a. Maintenance supplies
b. Wages of production line employees
c. Depreciation on production machinery
d. Resins for soap and shampoo products
e. Plant manager salary for the Clarksville, Indiana, soap plant
f. Packaging materials
g. Depreciation on the Morristown, Tennessee, toothpaste plant
h. Wages paid to Packaging Department employees
i. Scents and fragrances
j. Salary of process engineers


Answer:
a. Factory overhead cost
b. Direct labor cost
c. Factory overhead cost
d. Direct materials cost
e. Factory overhead cost
f. Direct materials cost
g. Factory overhead cost
h. Direct labor cost
i. Direct materials cost
j. Factory overhead cost




Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost:

a. Steering wheel
b. Salary of test driver
c. Depreciation of welding equipment
d. V8 automobile engine
e. Wages of assembly line worker
f. Steel used in body
g. Tires
h. Assembly machinery lubricants


Answer:
a. Direct materials cost
b. Factory overhead cost
c. Factory overhead cost
d. Direct materials cost
e. Direct labor cost
f. Direct materials cost
g. Direct materials cost
h. Factory overhead cost

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