
FINANCIAL ACCOUNTING
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QS 14-3 (Algo) Classifying direct materials, direct labor, and overhead LO C2
A company manufactures tennis balls. Classify each of the following costs as either direct materials, direct labor, or factory overhead.
1. Glue used in binding rubber cores to felt covers.
2. Factory electricity costs.
3. Rubber used to form the cores.
4. Indirect materials used in making goods.
5. Wages paid to factory machine operators.
6. Factory manager's salary.
Factory overhead
Factory overhead
Direct labor
Direct materials
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