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kotykmax [81]
3 years ago
7

Direct Materials, Direct Labor, and Factory Overhead identify the following costs as direct materials, direct labor, or factory

overhead for a magazine publisher:______ a. Staples used to bind magazines b. Wages of printing machine employees c. Maintenance on printing machines d. Paper used in the magazine
Business
1 answer:
Alexeev081 [22]3 years ago
6 0

Answer:

a. Staples used to bind magazines - <u><em>Direct Material</em></u>

The staples are integral to holding the magazines so is a direct material.

b. Wages of printing machine employees. - <em><u>Direct Labor</u></em>

The printing machine employees are directly related to the magazine's production as they print it.

c. Maintenance on printing machines. -<em><u> Factory Overhead</u></em>

This cost is not directly associated with the publishing of the magazine so is an overhead.

d. Paper used in the magazine. -<em><u>Direct Material</u></em>

Without paper, the magazine can not be published which makes it a direct material.

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It should be noted that the contribution margin is first used to cover fixed expenses.

<h3>What is contribution margin?</h3>

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