Answer:
The various costs associated with the Gala Company could be classified into the following:
a. <u>Direct Material Cost</u>
Memory boards and chips used in assembling computers.
b. <u>Direct Labour Cost</u>
Production superintendents’ salaries.
Salaries for assembly-line quality control inspectors.
Wages of workers assembling laptop computers.
c. <u>Manufacturing Overhead</u>
Sales commissions paid to sell laptop computers.
Electrical components used in assembling computers.
Soldering materials used on factory assembly lines.
d. <u>Period Cost</u>
Property taxes on the factory building.
Depreciation on the factory equipment.
Salaries for the night security guards for the factory building.
Explanation:
