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Bartel Corporation Produces Bar Stools for Restaurants

Question 156

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Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered direct or indirect cost for the cost object given.

Premises:
Nails and screws used in the production of the bar stools
Lubricants used on the bar stool manufacturing equipment
The production labor wages for the bar stool assemblers
The factory supervisor's salary for the bar stool factory
Manufacturing costs for wood and steel used in the bar stools
Responses:
Direct
Indirect

Correct Answer:

Nails and screws used in the production of the bar stools
Lubricants used on the bar stool manufacturing equipment
The production labor wages for the bar stool assemblers
The factory supervisor's salary for the bar stool factory
Manufacturing costs for wood and steel used in the bar stools
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