Answer:
Required 1.
1. Wages to assembly workers = direct labor
2. Factory water usage = factory overhead
3. Rent on factory building = factory overhead
4. Steering wheels used in cars = direct materials
5. Factory electricity = factory overhead
6. Amortization of patents on factory machine = factory overhead
Required 2.
1. Wages to assembly workers = direct cost
2. Factory water usage = indirect cost
3. Rent on factory building = indirect cost
4. Steering wheels used in cars = direct cost
5. Factory electricity = indirect cost
6. Amortization of patents on factory machine = indirect cost
Explanation:
Different Classes of Manufacturing Costs.
There are Variable Costs which vary with activity such as Direct Material and Direct Labor.
There are also Fixed Costs or Semi - Variable Costs which do not vary with level of activity directly such as Electricity, Rent.
Direct versus Indirect
Costs that can be directly traced (through observation) on the cost object are known as direct costs.
