Question

What cost category would be the largest dollar amount at the end of the year for...

What cost category would be the largest dollar amount at the end of the year for manufacturing #2 pencils? Direct Labor, Direct Materials, or Manufacturing Overhead. Why?

Homework Answers

Answer #1

The cost category of the direct material will be the highest in the manufacturing of pencil because the biggest component to be used in the manufacturing of pencil will be the material used in making the pencil apart from this direct labour and manufacturing overhead will be incurred at a low amount as compared to direct material.  

Basically in manufacturing of any product the component will comprise of direct material as the cost of raw material has the highest proportion in making of the product. Direct labour used to manufacture the product will be incurred but the amount will be in the proportion will be lower because of specialisation and different machinery used in it. Also manufacturing overhead other other indirect cost which will be in much lower proportion as they are in direct in nature towards the product.

Therefore the correct option is Direct material.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Current Attempt in Progress A job cost sheet of Sandoval Company is given below. Job Cost...
Current Attempt in Progress A job cost sheet of Sandoval Company is given below. Job Cost Sheet JOB NO. 469 Quantity 2,500 ITEM White Lion Cages Date Requested 7/2 FOR Todd Company Date Completed 7/31 Date Direct Materials Direct Labor Manufacturing Overhead 7/10 700 12 900 15 400 500 22 300 375 24 1,700 27 1,550 31 500 625 Cost of completed job:        Direct materials        Direct labor         Manufacturing overhead      Total cost      Unit cost (1) What are the source documents for direct materials, direct labor, and...
Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are...
Butrico Manufacturing Corporation uses a standard cost system, records materials price variances when direct materials are purchased, and prorates all variances at year-end. Variances associated with direct materials are prorated based on the balances of direct materials in the appropriate accounts, and variances associated with direct labor and manufacturing overhead are prorated to Finished Goods Inventory and to Cost of Goods Sold (CGS) on the basis of the relative direct labor cost in these accounts at year-end. The following information...
1. A job order cost sheet for Sheridan Company is as follows. Job No. 92 For...
1. A job order cost sheet for Sheridan Company is as follows. Job No. 92 For 2,000 Units Date Direct Materials Direct Labor Manufacturing Overhead Beg. bal. Jan. 1 6,500 7,400 5,920 8 7,400 12 8,400 6,888 25 2,900 27 4,400 3,608 16,800 20,200 16,416 Cost of completed job:    Direct materials $16,800    Direct labor 20,200    Manufacturing overhead 16,416 Total cost $53,416 Unit cost ($53,416 ÷ 2,000) $26.71 On the basis of this data, answer the following questions. (a) What was...
1. What is the cost of direct materials used? 2. What is the cost of indirect...
1. What is the cost of direct materials used? 2. What is the cost of indirect materials used? 3. What is the cost of direct labor? 4. What is the cost of indirect labor? 5. What is the cost of goods manufactured? 6. What is the cost of goods sold (before adjusting for any under- or overallocated manufacturing overhead)? 7. What is the actual manufacturing overhead? 8. How much manufacturing overhead was allocated to jobs? 9. What is the predetermined...
Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below....
Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.) Case A Case B Direct materials used $enter a dollar amount (a) $91,700 Direct labor 56,000 148,500...
Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below....
Manufacturing cost data for Orlando Company, which uses a job order cost system, are presented below. Indicate the missing amount for each letter. Assume that in all cases manufacturing overhead is applied on the basis of direct labor cost and the rate is the same. (Round overhead rate to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.) Case A Case B Direct materials used $enter a dollar amount (a) $88,300 Direct labor 52,000 150,200...
A job cost sheet of Sandoval Company is given below. Job Cost Sheet JOB NO. 469...
A job cost sheet of Sandoval Company is given below. Job Cost Sheet JOB NO. 469 Quantity 2,500 ITEM White Lion Cages Date Requested 7/2 FOR Todd Company Date Completed 7/31 Date Direct Materials Direct Labor Manufacturing Overhead 7/10 700 12 900 15 400 500 22 300 375 24 1,700 27 1,550 31 500 625 Cost of completed job:          Direct materials          Direct labor           Manufacturing overhead        Total cost        Unit cost A job cost sheet of Sandoval...
A job cost sheet of Sandoval Company is given below. Job Cost Sheet JOB NO. 469...
A job cost sheet of Sandoval Company is given below. Job Cost Sheet JOB NO. 469 Quantity 2,000 ITEM White Lion Cages Date Requested 7/2 FOR Todd Company Date Completed 7/31 Date Direct Materials Direct Labor Manufacturing Overhead 7/10 700 12 900 15 400 480 22 300 360 24 1,640 27 1,560 31 700 840 Cost of completed job:          Direct materials          Direct labor           Manufacturing overhead        Total cost        Unit cost (a) Answer the following questions. (1)...
In the IMF currency classification scheme, the US dollar would fall into what category Category 1:...
In the IMF currency classification scheme, the US dollar would fall into what category Category 1: Hard peg Category 2: Soft peg Category 3: Floating arrangements Category 4: Residual
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis...
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $110,500 of manufacturing overhead for an estimated allocation base of $85,000 direct material dollars to be used in production. The company has provided the following data for the just completed year:         Purchase of raw materials $...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT