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Annie Kavitha
Annie Kavitha, Lecturer
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1)An example of a fixed cost that would be considered a direct

Resolved Question:

1)An example of a fixed cost that would be considered a direct cost is:
a. a cost accountant's salary when the cost object is a unit of product.
b. the rental cost of a warehouse to store finished goods when the cost object is the Purchasing Department.
c.a production supervisor's salary when the cost objective is the Production Department.
d.Board of Directors' fees when the cost object is the Marketing Department.
2)A mattress manufacturer has provided the following cost data. The cost of fabric, foam, springs, and lumber is $68,000. The cost of indirect materials is $21,000. Labor cost of assembly workers is $52,000 and for production supervisors is $14,000. How much indirect cost is included ?
Submitted: 7 years ago.
Category: Finance
Expert:  Annie Kavitha replied 7 years ago.

HelloCustomer

 

1)

a. a cost accountant's salary when the cost object is a unit of product.

 

2)

Indirect cost = indirect material + labor cost of production supervisors

 

= 21,000 + 14,000

 

= 35,000

 

 

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