Question

The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company.
Required:
For each cost, indicate whether it would most likely be classified as direct labor, direct materials, manufacturing overhead, selling, or an administrative cost. (You may select more than one answer. Boxes left with question marks will be graded as incorrect.)

Answer 1

Answer:

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answer :

Direct Labor : The wages of employees who assemble computers from components,

Direct material cost: The cost of  a hardrive installed in a computer

manufacturing overhead: Depreciation on equipment used to test assembled computers before release to customers

selling cost :The cost of advertising in the puget sound computer user newspaper ,

sales commission paid to the company's salespeople

Administrative cost : Wages of assembly's shop supervisor,

wages of the company accountant ,  

Rent of the facility in the industry park

Explanation:

Direct Labor cost : This is the cost incurred in form of wages paid to the labor involved in the manufacturing process

Direct material cost: This are costs incurred in the purchase of raw materials for production of Goods or services

Manufacturing overhead cost :  Overhead costs are indirect costs incurred in the day to the Day Manufacturing process of the industry they

selling cost : Cost incurred during the marketing and sales of products

Administrative cost : This is cost incurred by the industry which is not directly or indirectly linked to the production of Goods and services, but for mainly support and maintenance of the industry