Match the items below for a bakery to the type of cost (a-d). Answers may be used more than once.
-Sprinkles for decoration
(indirect material)
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost
Challenging

Question

Match the items below for a bakery to the type of cost (a-d). Answers may be used more than once.
-Sprinkles for decoration 
(indirect material)
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost
Challenging

Quizplus · Accepted Answer

Sprinkles for decoration, when classified as indirect material, are considered part of the factory overhead costs. This is because they are used in the production process but cannot be directly traced to the production of a specific product in a cost-effective way.

Match the Items Below for a Bakery to the Type