MGMT 201: HW 2 and Quick Quiz
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company. 3. The wages of employees who assemble computers from components. A. Direct labor cost B. Direct materials cost C. Manufacturing overhead cost D. Selling cost E. Administrative cost
A. Direct labor cost
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company. 1. The cost of a hard drive installed in a computer A. Direct labor cost B. Direct materials cost C. Manufacturing overhead cost D. Selling cost E. Administrative cost
B. Direct materials cost
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company. Depreciation on equipment used to test assembled computers before release to customers. A. Direct labor costs B. Direct materials cost C. Manufacturing overhead cost D. Selling cost E. Administrative cost
C. Manufacturing overhead cost (depreciation=other)
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company. 5. The salary of the assembly shop's supervisor. A. Direct labor cost B. Direct materials cost C. Manufacturing overhead cost D. Selling cost E. Administrative cost
C. Manufacturing overhead cost (indirect labor)
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company. 2. The cost of advertising in the Puget Sound Computer Use newspaper. A. Direct labor cost B. Direct materials cost C. Manufacturing overhead cost D. Selling cost E. Administrative cost
D. Selling cost (ADVERTISING ALWAYS A SELLING COST)
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company. 4. Sales commissions paid to the company's salespeople A. Direct labor cost B. Direct materials cost C. Manufacturing overhead cost D. Selling cost E. Administrative cost
D. Selling cost (SALES COMMISSIONS ARE ALWAYS SELLING COST)
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company. 6. The salary of the company's accountant A. Direct labor cost B. Direct materials cost C. Manufacturing overhead cost D. Selling cost E. Administrative cost
E. Administrative cost
Variable cost or fixed cost? Depreciation of factory lunchroom facilities at a General Electric plant
Fixed (depreciation always fixed)
Variable cost or fixed cost? Insurance on IBM's corporate headquarters
Fixed cost
Variable cost or fixed cost? Insurance on a Bausch and Lomb factory producing contact lenses
Fixed cost
Variable cost or fixed cost? Salary of a supervisor overseeing production of printers at Hewlett-Packard
Fixed cost
Variable cost or fixed cost? Advertising
Fixed cost (ADVERTISING ALWAYS FIXED)
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? Advertising costs
Period
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? Cost of leasing the corporate jet used by the company's executives
Period
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? Depreciation on salespersons' cars
Period
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? Materials used for boxing products for shipment overseas (units are not normally boxed)
Period
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? Salaries of personnel who work in the finished goods warehouse
Period
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? The cost of renting rooms at a Florida resort for the annual sales conference
Period
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? The wages of the receptionist in the administrative offices
Period
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? Depreciation on chairs and tables in the factory lunchroom
Product
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? Factory supervisors' salaries
Product
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? Heat, water, and power consumed in the factory
Product
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? Lubricants used for machine maintenance
Product
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? Rent on equipment used in the factory (whenever see "factory" almost always PRODUCT COST)
Product
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? Soap and paper towels used by factory workers at the end of a shift
Product
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? The cost of packaging the company's product
Product
Suppose that you have been given a summer job as an intern at Isaac Aircams, a company that manufactures sophisticated spy cameras for remote-controlled military reconnaissance aircraft. The company, which is privately owned, has approached a bank for a loan to help finance its growth. The bank requires financial statements before approving the loan. Product Cost or Period Cost? Workers' compensation insurance for factory employees
Product
Variable cost or fixed cost? Apples processed and canned by Del Monte
Variable cost
Variable cost or fixed cost? Hamburger buns in a Wendy's restaurant
Variable cost
Variable cost or fixed cost? Shipping canned apples from a Del Monte plant to customers
Variable cost
Variable cost or fixed cost? Commissions paid to automobile salespersons
Variable cost (commissions always variable cost)
Variable cost or fixed cost? Steering wheels installed in BMW
variable cost (more BMWs more steering wheels)