Question

Tracey Electronics Corporation manufactures a portable radio designed for mounting on the wall of the bathroom. The following list represents some of the different types of costs incurred in the manufacture of these radios. Place an X in the appropriate space below.

		Direct Materials	Direct Labor	Mfg. Overhead	Period Cost
A.	The plant manager’s salary
B.	The cost of heating the plant
C.	The cost of heating the executive offices
D.	The cost of printed circuit boards used in the radios
E.	Salaries and commissions of company salespersons
F.	Depreciation on office equipment used in the executive offices
G.	Depreciation on production equipment used in the plant
H.	Wages of janitorial personnel who clean the plant
I.	The cost of insurance on the plant building
J.	The cost of electricity to light the plant
K.	The wages of the workers assembling the radios
L.	The cost of maintaining and repairing equipment in the plant
M.	The cost of printing promotional materials for trade shows
N.	The cost of solder used in assembling the radios
O.	The cost of telephone service for the executive offices

Answer 1