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:

Bank Service Charge

Fees charged by banks for account services provided, including monthly maintenance, transactions exceeding a certain limit, or ATM usage outside the network.

NSF Cheque

A cheque that cannot be processed because the account it is drawn on does not have sufficient funds, standing for "Non-Sufficient Funds."

Outstanding Cheques

Checks that have been written and recorded in the issuing company's ledger but have not yet been cashed or cleared by the bank.

Balance Per Bank

It represents the amount of money in a company’s bank account, according to the bank's records.