Question

Classifying costs as materials, labor, or factory overhead

Indicate whether the following costs of Colgate-Palmolive Company would be classified as direct materials cost, direct labor cost, or factory overhead cost:
a. Bottles in which mouthwashes are sold
b. Depreciation on production machinery
c. Depreciation on the soap plant
d. Maintenance supplies
e. Packaging department employees wages
f. Plant manager salary, toothpaste plant
g. Resins for soap and shampoo products
h. Salary of process engineers
i. Scents and fragrances
j. Wages of production line employees

Answer 1

The answer is:

A - direct materials cost

B - factory overhead cost

C- factory overhead cost

D - factory overhead cost

E - direct labor cost

F - factory overhead cost

G - direct material cost

H - factory overhead cost

I - material cost

J- direct labor cost

Step-by-step explanation:

Material cost is the cost of materials used to produce a firm's product.

Labor cost is the total cost of all wages paid to employees

Overhead cost is the cost not directly attributed to creating a product

A - direct materials cost

B - factory overhead cost

C- factory overhead cost

D - factory overhead cost

E - direct labor cost

F - factory overhead cost

G - direct material cost

H - factory overhead cost

I - material cost

J- direct labor cost