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Cost Classification in Manufacturing

This document classifies different costs into Direct Materials vs Direct Labor vs Factory Overhead, Fixed vs Variable vs Mixed, and Manufacturing vs Selling vs Administrative categories. Some examples of Direct Materials are metal, leather, and wood used in manufacturing furniture. Direct Labor includes wages paid to machine operators. Factory Overhead consists of depreciation of factory machinery and salaries of factory supervisors. Factory rent is Fixed, while wages for workers paid based on units produced is Variable. The President's salary is Administrative, while metal for manufacturing golf clubs and wages of drivers are Manufacturing.

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Jannelle Salac
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71 views4 pages

Cost Classification in Manufacturing

This document classifies different costs into Direct Materials vs Direct Labor vs Factory Overhead, Fixed vs Variable vs Mixed, and Manufacturing vs Selling vs Administrative categories. Some examples of Direct Materials are metal, leather, and wood used in manufacturing furniture. Direct Labor includes wages paid to machine operators. Factory Overhead consists of depreciation of factory machinery and salaries of factory supervisors. Factory rent is Fixed, while wages for workers paid based on units produced is Variable. The President's salary is Administrative, while metal for manufacturing golf clubs and wages of drivers are Manufacturing.

Uploaded by

Jannelle Salac
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Cost Classification

DM vs DL vs FOH
1. Metal used in manufacturing tables
2. Insurance on factory machines
3. Leather used in manufacturing furniture
4. Wages paid to machine operators
5. Depreciation of factory machinery
6. Salaries of factory supervisors
7. Wood used in manufacturing furniture
8. Sandpaper, bolts, and nails
9. Property Taxes on factory building
10. Rent on factory building
FIXED vs VARIABLE vs MIXED
1. Factory rent
2. Wages for workers paid based on units produced
3. Equipment maintenance
4. Cost Accountant’s Salary
5. Depreciation based on output
6. Salary of factory supervisor
7. Telephone (monthly)
8. Paper in the manufacturing of books
9. Wages of machine operators
10. Commission of salesmen
Manufacturing vs Selling vs Administrative
1. Metal for the manufacture of golf clubs
2. Wages of drivers of delivery trucks
3. Rent on factory building
4. Freight-in of materials purchased
5. President’s salary

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