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:

Repayment of Borrowings

The process of paying back borrowed funds to creditors, including the principal amount and any applicable interest.

Statement of Cash Flows

A financial report detailing how variations in income and balance sheet accounts influence cash and cash equivalents, segmented into operating, investing, and financing activities.

Interest Paid

The amount of money paid by a borrower to a lender in return for the use of borrowed funds, calculated as a percentage of the loan amount.

Dividends Paid

Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.