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COST CLASSIFICATION 12 points ...

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Accounting

COST CLASSIFICATION 12 points

Classify each of the following costs as: direct materials (DM), direct labor (DL), factory overhead (FO), selling expense (S) or administrative expense (A). Place the code of DM, DL, FO, S, or A on the line to the left of each cost.

1. Subscription to "The Wall Street Journal" for executive lounge.
2. Salary of the Director of Internal Auditing.
3. Long-distance telephone bill for calls made by salespersons.
4. Cotton for a textile manufacturer of blue jeans.
5. Steel for a construction contractor.
6. Electricity used to operate factory machinery.
7. Gloves for factory machine operators.
8. Fees paid to lawn service for office grounds.
9. Salary of secretary to vice-president of marketing.
10. Production supervisor's salary.
11. Depreciation on factory equipment.
12. Cost of a radio commercial.

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