Question

I. Cost Classifications: Fleet Company manufactures shoes. Label each item as to the type of cost:  DM, DL, MO or P (direct material, direct labor, mfg overhead or period cost)
_____1. Cost of wages of workers who assemble the shoes.
_____2. Depreciation on the factory in which the shoes are built.
_____3. The cost of leather used in the shoes.
_____4. Wages of the cleanup crew at the factory.
_____5. Research costs for a new type of shoe under development.
_____6. Depreciation on the sewing machines in the factory.
_____7. Indirect materials such as shoe polish, used to condition the leather.
_____8. Factory supervisor’s salary.
_____9. Salary of the night watchman at the factory.
____10. Depreciation on the robotic machine used to build the shoe boxes.

Answer 1