Office Supply Company manufactures office furniture.Recently the company decided to develop a formal cost accounting system.The company is currently converting all costs into classifications as related to its manufacturing processes.
Required:
For the following items,label each as being appropriate for
∙ direct cost tracing of the finished furniture,
∙ indirect cost allocation of an indirect manufacturing cost to the finished furniture,or
∙ as a nonmanufacturing item.

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The Answer of Office Supply Company manufactures office furniture.Recently the company decided to develop a formal cost accounting system.The company is currently converting all costs into classifications as related to its manufacturing processes.
Required:
For the following items,label each as being appropriate for
∙ direct cost tracing of the finished furniture,
∙ indirect cost allocation of an indirect manufacturing cost to the finished furniture,or
∙ as a nonmanufacturing item.

Office Supply Company Manufactures Office Furniture