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:

Positive Statement

A factual statement that can be tested and validated, describing the world as it is.

General State

A term potentially referring to the overall condition of a system or entity, but is not a standard term in economics or related fields. NO.

Normative Statement

A statement that expresses a value judgment or opinion, reflecting beliefs about what should be rather than what is.

Advanced Industrial Society

A society characterized by high levels of industrialization, technological advancement, and standard of living.