ndicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost: Cost Classification a.  Depreciation of robotic assembly line equipment   b.  V8 automobile engine   c.  Steering wheel   d.  Wheels   e.  Painting safety masks for employees working in the paint room   f.  Salary of test driver   g.  Glass used in the vehicle’s windshield   h.  Wages of assembly line worker

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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Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost:

Cost Classification
a.  Depreciation of robotic assembly line equipment  
b.  V8 automobile engine  
c.  Steering wheel  
d.  Wheels  
e.  Painting safety masks for employees working in the paint room  
f.  Salary of test driver  
g.  Glass used in the vehicle’s windshield  
h.  Wages of assembly line worker  
Expert Solution
Step 1

Direct material indicates the cost spend on material consumed in the product. Direct labor cost indicates the cost spend on the labor hours consumed in the production process. Factory overhead cost indicates the cost which is difficult to identify in the product, such as supervisor salary, electricity bills, and so on.

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