Question

Indicate whether each of the following costs of an airplane manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a. Aircraft engines b. Controls for flight deck c. Depreciation of welding equipment d. Landing gear e. Machine lubricants f. Salary of plant superintendent g. Tires h. Wages of assembly line worker

Answer 1

Cost Classification :

a. Aircraft engines = direct materials cost

b. Controls for flight deck = direct materials cost

c. Depreciation of welding equipment = factory overhead cost

d. Landing gear = direct materials cost

e. Machine lubricants = factory overhead cost

f. Salary of plant superintendent = factory overhead cost

g. Tires = direct materials cost

h. Wages of assembly line worker = direct labor cost

Step-by-step explanation:

direct materials cost,

This is the cost of materials directly traced to the Product manufactured.

direct labor cost,

This is the cost of factory labor directly traced to the Product manufactured.

factory overhead cost

This is the factory costs incurred not directly traced to the Product being manufactured