Archambeau Products Company Manufactures Office Furniture

Multiple Choice

Archambeau Products Company manufactures office furniture. Recently, the company decided to develop a formal cost accounting system and classify all costs into three categories. Categorize each of the following items as being appropriate for (1) cost tracing to the finished furniture, (2) cost allocation of an indirect manufacturing cost to the finished furniture, or (3) as a nonmanufacturing item.
-Lathe maintenance

A) Cost Tracing
B) Cost Allocation
C) Nonmanu-faturing