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

Exercise 4

Classifying costs as factory overhead
Which of the following items are properly classified as part of factory overhead for Ford Motor Company, a maker of heavy automobiles and trucks
a. Plant manager's salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassemblies
b. Depreciation on Flat Rock, Michigan, assembly plant
c. Dividends paid to shareholders
d. Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant
e. Leather to be used on vehicles that have leather interiors
f. Depreciation on mechanical robots used on the assembly line
g. Consultant fees for a study of production line efficiency
h. Dealership sales incentives
i. Vice president of human resources's salary
j. Property taxes on the Detriot, Michigan, headquarters building