Lester-Sung,Inc

question 73

Short Answer

Lester-Sung,Inc.is a large general construction firm in the commercial building industry.The following is a list of costs incurred by this company:
1)The cost of a laborer for 8 hours at $6.00 an hour.
2)The cost of insurance for the carpenters.
3)The cost of 1,000 board feet of 2x4 lumber.
4)The CEO's salary.
Required: Classify each cost above using the following categories:
(a)Selling and administrative cost
(b)Direct material
(c)Direct labor
(d)Overhead cost

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Definitions:

Tenancy Termination

The end of a lease or rental agreement, which can occur for various reasons and may be initiated by either the tenant or the landlord.

Personal Reasons

Circumstances or considerations relating to the individual's personal life that influence decisions or actions.

Leasehold Terminates

The expiration or ending of a lease agreement, resulting in the leaseholder's right to occupy the property concluding.

Implied Warranty

A guarantee based on the assumption or legal requirement that a product will meet certain quality and performance standards.