A bicycle company has these costs: tires, salaries of employees who put tires on the wheels, factory building depreciation, wheel nuts, spokes, salary of factory manager, handlebars, and salaries of factory maintenance employees. Classify each cost as direct materials, direct labor, or overhead. (Suppose the cost of wheel nuts are impractical to trace to bicycles) Which of the following statement is correct? OA Factory building depreciation, salary of factory manager, salaries of factory maintenance employees, wheel nuts belong to manufacturing overhead. OB Salary of employee who put tires on the wheels belongs to indirect labor. OC Tires, spokes and handlebars belong to indirect material. OD. Salary of factory manager, and salaries of factory maintenance employees are direct labor.

A bicycle company has these costs: tires, salaries of employees who put tires on the wheels, factory building depreciation, wheel nuts, spokes, salary of factory manager, handlebars, and salaries of factory maintenance employees. Classify each cost as direct materials, direct labor, or overhead. (Suppose the cost of wheel nuts are impractical to trace to bicycles) Which of the following statement is correct? OA Factory building depreciation, salary of factory manager, salaries of factory maintenance employees, wheel nuts belong to manufacturing overhead. OB Salary of employee who put tires on the wheels belongs to indirect labor. OC Tires, spokes and handlebars belong to indirect material. OD. Salary of factory manager, and salaries of factory maintenance employees are direct labor.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 1E: Indicate whether each of the following costs of an automobile manufacturer would be classified as...

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