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JJ Corporation Manufactures Exercise Equipment

Question 10

Short Answer

JJ Corporation manufactures exercise equipment.From this list below indicate whether the item would be classified as DM - direct material,DL - direct labor,MOH - manufacturing overhead,or NP - nonproduct cost.
_____ 1.Cost of the cables used in the equipment
_____ 2.Set up cost to change from one piece of equipment to another
_____ 3.Research cost incurred to develop new types of equipment
_____ 4.Salary of the quality control inspector
_____ 5.Cost of the oil used to cut metal tubing
_____ 6.Insurance on factory equipment
_____ 7.Wages of employees who put the equipment together
_____ 8.Salary of warehouse foreman where raw material is stored
_____ 9.Cost of shipping equipment to customers
_____ 10.Shipping cost paid to get raw materials

Correct Answer:

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1.DM; 2.MOH; 3.NP; 4...

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