Question

Putting an X in the appropriate spot, classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs. Other costs have been provided for you.
The fixed and variable cost classifications have been provided for you.
Item/ Direct Direct Manufacturing Period Fixed Variable
Cost Material Labor Overhead Costs
Groomer x X
Day care attendant x X
Receptionist x X
Kennel attendant x
Food and water bowls x X
Fencing for day care area x
Installation of fencing x
Dog grooming arm (attaches to table)
12 kennels cost
Depreciation on kennels
Rent X
Utilties and insurance X
Grooming table x X
Grooming tub 48" x X
Heating system x X
Depreciation on heating system X
Clippers x
Shampoo (Crystal Clear:
five-gallon pail) x X
Cage bank (set of five)
Salon Tuff Capri mobile carry cart
Towels x
Scissors (7-inch straight,
ear & nose) x
Toys (used in day care only) x X
Cleaning products (used
throughout) x X
Dryer x
Rubberized flooring (day care) X
Loan X
Draw X

Answer 1

Answer:

The following costs are classified appropriately under the following heading:

Direct Material:

Food and water bowls

Dog grooming arm

12 kennels cost

Grooming table

Grooming tub 48"

Shampoo (Crystal Clear:  five-gallon pail)

Cage bank (set of five)

Salon Tuff Capri mobile carry cart

Towels

Scissors (7-inch straight,  ear & nose)

Toys (used in day care only)

Cleaning products (used  throughout)

Dryer

Direct Labour:

Groomer

Day care attendant

Receptionist

Kennel attendant

Rubberized flooring (day care)

Overhead:

Fencing for day care area

Installation of fencing

Utilties and insurance

Heating system

Draw

Period Cost:

Depreciation on kennels

Rent

Depreciation on heating system X

Clippers

Loan

Explanation: