Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 25

A Direct materials, direct labor, and factory overhead
Identify the following costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for an automobile manufacturer:
a. Wages of employees that operate painting equipment
b. Wages of the plant supervisor
c. Steel
d. oil used for assembly line machinery
B Direct materials, direct labor, and factory overhead
Identify the following costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher:
a. Staples used to bind magazines
b. Wages of printing machine employees
c. Maintenance on printing machines
d. Paper used in the magazine