1. One of the products Al-Can Products, Inc. manufactures for their rest stops are benches. Perform thefollowing tasks to classify and record common manufacturing costs.2. The production of the rest stop benches requires the following costs. For each cost, determine how thecost should be classified by placing an X in the appropriate column.Wages of factory supervisorRent of company headquartersLumber to manufacture benchesFactory property taxesBench inspector wagesWages for the marketing managerCleaning supplies to maintain equipmentWages of production employeesStain for the benchesDirectMaterialsDirect FactoryLabor OverheadNone

Direct material is the cost of material purchased for the production process of the company. Direct…

Answered: The production of the rest stop benches…

The production of the rest stop benches requires the following costs. For each cost, determine how the cost should be classified by placing an X in the appropriate column.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

1. One of the products Al-Can Products, Inc. manufactures for their rest stops are benches. Perform the
following tasks to classify and record common manufacturing costs.
2. The production of the rest stop benches requires the following costs. For each cost, determine how the
cost should be classified by placing an X in the appropriate column.
Wages of factory supervisor
Rent of company headquarters
Lumber to manufacture benches
Factory property taxes
Bench inspector wages
Wages for the marketing manager
Cleaning supplies to maintain equipment
Wages of production employees
Stain for the benches
Direct
Materials
Direct Factory
Labor Overhead
None

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