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Evans Manufacturing Has Three Cost Objects That It Uses to Accumulate

Question 127

Essay

Evans Manufacturing has three cost objects that it uses to accumulate costs for its manufacturing plant in Virginia.They include:
Cost Object #1: The real estate dwelling(s)(physical buildings and equipment)
Cost Object #2: The use of buildings and equipment
Cost Object #3: The use and availability of manufacturing labor
The following manufacturing overhead cost categories are found in the accounting records:
a.Depreciation on buildings and equipment
b.Machine lubricants
c.Insurance for property
d.Supervisors salaries
e.Fringe benefits
f.Property taxes
g.Utilities
Required:
Assign each of the above costs to the most appropriate cost object.

Correct Answer:

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Cost Object #1 includes catego...

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