Question

Please answer within the hour

1a. Define the cost object as a manufactured electric scooter. Of the following items, identify an indirect cost associated with this cost object.

Assembly worker employee benefits.

Scooter assembly wages.

Brakes

Wheels.

Supervisor salary.

1b. Of the types of costs that we introduced at the beginning of our study of Managerial Accounting, the type of costs which are charged directly to the income statement as expenses when they are incurred are referred to as:

Product costs.

Balance sheet costs.

Period costs.

Capitalized costs.

General costs.

1c. Cameroon Corp. manufactures and sells electric staplers for $16.10 each. If 10,000 units were sold in December, and if management forecasts 3% growth in sales each month, then the dollar amount of electric stapler sales budgeted for February should be:

$165,830

$175,929

$161,000

$170,805

$181,207

Answer 1

Q. No.	Correct Option	Reason
1A)	Correct Option: Supervisor Salary	All other cost such as Assembly worker employee benefits. Scooter assembly wages. Brakes Wheels. Are direct cost associated with cost object
1B)	Correct Option Period costs	Period cost are basically non manufacturing cost and they are directly deboted to income statement as and when incurred.
1C)	Correct Option $170805	Decmber sales	161,000
		January sales	165,830	(161000*(1+3%))
		February sales	170,805	(165830*(1+3%))