Lucas Manufacturing Has Three Cost Objects That It Uses to Accumulate

question 138

Essay

Lucas Manufacturing has three cost objects that it uses to accumulate costs for its manufacturing plants. They are:
Cost object #1:The physical buildings and equipment
Cost object #2:The use of buildings and equipment
Cost object #3:The availability and use of manufacturing labor
The following manufacturing overhead cost categories are found in the accounting records:
a.Depreciation on buildings and equipment
b.Lubricants for machines
c.Property insurance
d.Supervisors salaries
e.Fringe benefits
f.Property taxes
g.Utilities
Required:
Assign each of the above costs to the most appropriate cost object.

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Definitions:

Operant

A term used in the science of behavior to describe an action or behavior that operates on the environment to produce consequences.

Classical

Pertaining to the first significant period or highest standard within any discipline; in psychology, often refers to conditions or experiments that form the basis of behaviorism, such as classical conditioning.

Pavlov

A Russian physiologist best known for developing the concept of the conditioned reflex through experiments with dogs, leading to the foundation of classical conditioning in behaviorism.

Law of Effect

A principle suggesting that responses that produce a satisfying effect in a particular situation become more likely to occur again in that situation, while responses that produce a discomforting effect become less likely.