Lucas Manufacturing has three cost objects that it uses to accumulate costs for its manufacturing plants.They are:
$\begin{array}{ll}
\text { Cost object } \# 1: & \text { The physical buildings and equipment } \
\text { Cost object } \# 2: & \text { The use of buildings and equipment } \
\text { Cost object } \# 3: & \text { The availability and use of manufacturing labor }
\end{array}$ The following manufacturing overhead cost categories are found in the accounting records:
a. Depreciation on buildings and equipment
b. Lubricants for machines
c. Property insurance
d. Supervisors salaries
e. Fringe benefits
f. Property taxes
g. Utilities Required:
Assign each of the above costs to the most appropriate cost object.

Question

Lucas Manufacturing has three cost objects that it uses to accumulate costs for its manufacturing plants.They are:
 $\begin{array}{ll}
\text { Cost object } \# 1: & \text { The physical buildings and equipment } \
\text { Cost object } \# 2: & \text { The use of buildings and equipment } \
\text { Cost object } \# 3: & \text { The availability and use of manufacturing labor }
\end{array}$ The following manufacturing overhead cost categories are found in the accounting records:
 a. Depreciation on buildings and equipment
b. Lubricants for machines
c. Property insurance
d. Supervisors salaries
e. Fringe benefits
f. Property taxes
g. Utilities Required:
Assign each of the above costs to the most appropriate cost object.

Quizplus · Accepted Answer

The Answer is Cost object # 1 includes categories a,c,and f.
Cost object # 2 includes categories b and g.
Cost object # 3 includes categories d and e.

Lucas Manufacturing Has Three Cost Objects That It Uses to Accumulate