Classify the following items as Direct materials, Selling and administrative expense, Factory overhead, or Direct labor. a. Rent expense on factory building b. Sales supplies used c. Factory supplies used d. Indirect materials used e. Wages of assembly line personnel f. Cost of primary material used to make product g. Depreciation on office equipment h. Rent on office facilities i. Insurance expired on factory equipment j. Utilities incurred in the office k. Advertising expense

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Business

Susan Hays

16 August, 13:18

Classify the following items as Direct materials, Selling and administrative expense, Factory overhead, or Direct labor. a. Rent expense on factory building b. Sales supplies used c. Factory supplies used d. Indirect materials used e. Wages of assembly line personnel f. Cost of primary material used to make product g. Depreciation on office equipment h. Rent on office facilities i. Insurance expired on factory equipment j. Utilities incurred in the office k. Advertising expense

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Sonia Luna · Answer 1

a. Rent expense on factory building = Factory overhead, because it is the factory building. b. Sales supplies used = Selling and administrative expense. c. Factory supplies used = Factory overhead. d. Indirect materials used = Factory overhead. e. Wages of assembly line personnel = Direct Labor. f. Cost of primary material used to make product = Direct Materials. g. Depreciation on office equipment = Selling and administrative expense. h. Rent on office facilities = Selling and administrative expense. i. Insurance expired on factory equipment = Factory overhead. j. Utilities incurred in the office = Selling and administrative expense. Advertising expense = Selling and administrative expense.