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The Costs Listed Below Are Related to a Manufacturer of All-Natural

Question 132

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The costs listed below are related to a manufacturer of all-natural ice cream. indicate whether the cost should be classified as direct materials (DM), direct labor (DL), or overhead (OH).

Premises:
Maintenance on factory building
Cream
Mixing department wages
Vanilla
Factory supervisor's salary
Machine oil for mixing machines
Sugar
Machine operator wages
Factory maintenance labor
Depreciation on factory equipment
Responses:
direct materials (DM)
direct labor (DL)
overhead (OH)

Correct Answer:

Maintenance on factory building
Cream
Mixing department wages
Vanilla
Factory supervisor's salary
Machine oil for mixing machines
Sugar
Machine operator wages
Factory maintenance labor
Depreciation on factory equipment
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