Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
The PC Works assembles custom computers from components supplied by various manufacturers
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that the company incurs Required: For each cost, indicate whether it w t would most likely be classified as direct materials, direct labor, manufacturing werhicad selling or an administrative cost. 1. The cost of a hard drive installed in a computer 2. The cost of advertising in the Piger Sound Computer User newspaper. 3. The wages of employees who assemble computers from components 4. Sales commissions paid to the company's salespeople. 5. The salary of the assembly shop's supervisor 6. The salary of the company's accountant 7. Depreciation on equipment used to test assembled computers before release to customers. 8. Rent on the facility in the industrial park
Expert Solution
Direct material cost are cost incurred for raw materials that is used in the product.
Direct labor cost are those cost of work incurred, related to manufacturing
Manufacturing overhead refers to all indirect cost. the cost of indirect material, indirect labor, etc...
Selling cost are expenses from selling activities.
Administrative cost is cost that incurred but not related to manufacturing or sales.
1. cost of hard drive installing: As the store's main product is computer this can be treated as direct material.
2. Cost of advertising: it is a selling expense, as advertising is used for marketing
3. Wages of employees who assemble computer: as they are directly related to product assembling, it is treated as direct labor.
4. sales commission is treated as selling cost
5. supervisors salary is an indirect labor cost, so it is a manufacturing cost.
6.accountant's salary is administrative expense as it is not related to manufacturing or selling
7. Depreciation is referred to manufacturing overhead.
8. Rent on facility in the industrial park is divided among manufacturing, administrative and sales.
industrial park is an area which has offices, warehouses,etc... the area is used for industrial use. so this rent can be included under these three heads.
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
