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Classify the following costs incurred by a step railing manufacturing company as
direct materials, direct labour, factory overhead, or period costs:
a. Wages paid to production workers
b. Utilities in the office
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c. Depreciation on machinery in plant
d. Steel 20 questions remaining
e. Accountant's salary
f. Rent on factory building
g. Rent on office equipment
h. Maintenance workers' wages
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i. Utilities in the plant
j. Maintenance on office equipment
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a. Wages paid to production workers - Production. Therefore Direct Labour.

b. Utilities in the office - Office. Therefore Period Costs.

c. Depreciation on machinery in plant - Plant. i.e. Factory. Not directly connected with production.
Therefore Factory Overhead.
My Textbook Solutions

d. Steel - Assuming the Step Railing being manufactured uses steel as a raw material. Hence Direct
Materials.

e. Accountant's salary - Office. Therefore Period Costs.

f. Rent on factory building - Factory. Not directly connected with production. Therefore Factory Overhead.
Computer... Discrete... Thermodyn...
g. Rent on office equipment - Office. Therefore Period Costs.
6th Edition 7th Edition 8th Edition
h. Maintenance workers' wages - Maintenance - Assumed Factory. But not directly connected with View all solutions
production. Therefore Factory Overhead.

i. Utilities in the plant - Plant. Not directly connected with production. Therefore Factory Overhead.

j. Maintenance on office equipment - Office. Therefore Period Costs.

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