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.

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Definitions:

Mimicry

The action or art of imitating someone or something, often used as a survival strategy in the natural world.

Outcome-based

Pertains to approaches or methods that focus primarily on achieving specific results or outcomes, often used in management, education, and healthcare settings.

Knowledge-based

Refers to processes, practices, or systems that rely primarily on the use of specialized knowledge or expertise.

HR Budget

An estimated financial plan for the Human Resources department, allocating funds for salaries, training, benefits, recruitment, and other HR activities.