Final answer:
The direct cost associated with the production of a chair for Mulholland Company includes the direct materials used in production and the direct labor, specifically the salary of the worker that glues the legs to the seat of the chair.
Step-by-step explanation:
When the cost object is a product like a chair, the costs that are considered direct are those that can be directly traced to the production of that specific product. For Mulholland Company, which manufactures various wooden furniture products, the direct costs associated with manufacturing a chair would include:
- Direct materials: The wood, glue, and any other materials that are used to create the chair.
- Direct labor: The wages paid to the workers involved in the manufacturing process, such as the salary of the worker that glues the legs to the seat of the chair.
Costs that are not directly traceable to the cost object, such as the manufacturing supervisor's salary, insurance on the factory, and depreciation on the factory building, are considered indirect costs and are not classified as direct costs of the cost object (the chair).
Therefore, the correct answer is d. salary of the worker that glues the legs to the seat of the chair.