Obj. 2 EX 16-2 Classifying costs as materials, labor, or factory overhead Indicate whether the following costs of Procter & Gamble (PG), a maker of consumer prod- ucts, would be classified as direct materials cost, direct labor cost, or factory overhead cost: a. Depreciation on assembly line equipment in the Mehoopany, Pennsylvania, paper products plant b. Packaging materials C. Maintenance supplies d. Licensing payments for use of Disney characters on children's products e. Paper used in bath tissue f. Salary for process engineers g. Chemicals for body wash products h. Plant manager salary for the lowa City, lowa, plant i. Scents and fragrances used in making soaps and detergents j. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant

9:01 5:34 Manufacturing Overhead consists of which of the following costs: (check all that apply) HUUM ◄ Previous Utilities in the factory Utilities in the corporate office Property taxes on the factory Salary of factory supervisor Materials that are incorporated into a product Prime costs SUBMIT K + CC

Indicate whether each cost is: A. Fixed or Variable b. Selling, General/Administrative, or Manufacturing

Which of the following costs is best classified as a fixed cost with respect to volume of activity? (See your Chapter 20 notes, page 5)  Direct labor Electricity used to heat, light, and cool a factory Cleaning supplies used in an automobile assembly plant Straight-line depreciation expense of a machine used in a factory Total cost of salaries paid to quality inspectors in a manufacturing plant Tires used in an automobile manufacturing plant

:14 es Howell Corporation's activity-based costing system has three activity cost pools-Machining, Setting Up, and Other. The company's overhead costs, which consist of equipment depreciation and indirect labor, are allocated to the cost pools in proportion to the activity cost pools' consumption of resources. Equipment depreciation (total) Indirect labor (total) Distribution of Resource Consumption Across Activity Cost Pools Setting Up 0.30 0.10 Equipment depreciation Indirect labor Product S4 Product CO Total Costs in the Machining cost pool are assigned to products based on machine-hours (MHS) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. Sales (total) Direct materials (total) Direct labor (total) $ 33,800 $ 7,950 MHS 8,900 6,300 15,200 Required A Machining 0.30 0.30 Additional data concerning the company's products appears below: Product S4 Product Co $ 88,100 $ 75,500 $…

Required: 1. What was the cost of raw materials put into production during the year?        2. How much of the materials in requirement 1 consisted of indirect materials?       3. How much of the factory labour cost for the year consisted of indirect labour?       4. What was the cost of goods manufactured for the year?       5. What was the cost of goods sold for the year (before considering underapplied or overapplied overhead)?       6. If overhead is applied to production on the basis of direct materials cost, what rate was in effect during the year?       7. Was manufacturing overhead underapplied or overapplied? By how much?       8. Compute the ending balance in the Work in Process inventory account. Assume that this balance consists entirely of goods started during the year. If $33,200 of this balance is direct materials cost, how much of it is direct labour cost? Manufacturing overhead cost?