Indicate whether each of the following cost of an automobile manufacturer would be classified as direct materials, direct labor, or manufacturing overhead.(a) _ Windshield(b) _ Engine(c) _ Wages of assembly line worker(d) _ Depreciation of factory machinery(e) _ Factory Machinery lubricants(f) _ Tires(g) _ Steering wheel(h) _ Salary of painting supervisor

Question

14-01-2020
Business

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Indicate whether each of the following cost of an automobile manufacturer would be classified as direct materials, direct labor, or manufacturing overhead.(a) _ Windshield(b) _ Engine(c) _ Wages of assembly line worker(d) _ Depreciation of factory machinery(e) _ Factory Machinery lubricants(f) _ Tires(g) _ Steering wheel(h) _ Salary of painting supervisor

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Answer:

Explanation:

The meaning of terms is shown below:

Direct material: The material which is directly related to the production process of the product is known as direct material

Direct labor: The labor who are engaged in production process of the product plus their wages is known as the direct labor

Manufacturing overhead: All the indirect cost related to manufacturing is known as manufacturing overhead i.e depreciation on factory equipment, the salary of supervisor etc

The categorization is given below:

a. Windshield - direct materials

b. Engine - direct materials

c. Wages of assembly line worker - direct labor

d. Depreciation of factory machinery - manufacturing overhead

e. Factory Machinery lubricants - manufacturing overhead

f. Tires - direct materials

g. Steering wheel - direct materials

h. Salary of painting supervisor - manufacturing overhead