Question

Nizam Company produces speaker cabinets. Recently, Nizam switched from a traditional departmental assembly line system to a manufacturing cell in order to produce the cabinets. Suppose that the cabinet manufacturing cell is the cost object. Assume that all or a portion of the following costs must be assigned to the cell.

a. Depreciation on electric saws, sanders, and drills used to produce the cabinets
b. Power to heat and cool the plant in which the cell is located
c. Salary of cell supervisor
d. Wood used to produce the cabinet housings
e. Maintenance for the cell's equipment (provided by the maintenance department)
f. Labor used to cut the wood and to assemble the cabinets
g. Replacement sanding belts
h. Cost of janitorial services for the plant
i. Ordering costs for materials used in production
j. The salary of the industrial engineer (she spends about 20 percent of her time on work for the cell)
k. Cost of maintaining plant and grounds
l. Cost of plant's personnel office
m. Depreciation on the plant
n. Plant receptionist's salary and benefits

Answer 1

The costs that need to be assigned to the manufacturing cell include depreciation, power, supervisor salary, wood, labor, replacement sanding belts, ordering costs, industrial engineer salary, maintenance, janitorial services, plant maintenance costs, plant depreciation, and receptionist salary.

Step-by-step explanation:

The subject of this question is Business and the grade level is College.

Costs that need to be assigned to the manufacturing cell include:

1. Depreciation on electric saws, sanders, and drills used to produce the cabinets
2. Power to heat and cool the plant in which the cell is located
3. Salary of cell supervisor
4. Wood used to produce the cabinet housings
5. Labor used to cut the wood and assemble the cabinets
6. Replacement sanding belts
7. Ordering costs for materials used in production
8. Salary of the industrial engineer (20% of her time is spent on work for the cell)
9. Maintenance for the cell's equipment (provided by the maintenance department)
10. Cost of janitorial services for the plant
11. Cost of maintaining plant and grounds
12. Depreciation on the plant
13. Plant receptionist's salary and benefits