Classify Each of the Following Costs for Harrison Company as a Selling

question 148

Essay

Classify each of the following costs for Harrison Company as a selling or general and administrative period cost or as a direct or indirect product cost by entering the dollar amount(s)in the appropriate column(s):
A.Paid $75,000 in wages for employees who assemble the company's products.
B.Paid sales commissions of $58,000.
C.Paid $38,000 in salaries for factory supervisors.
D.Paid $88,000 in salaries for executives (president and vice presidents).
E.Recorded depreciation cost of $25,000.$13,000 was depreciation on factory equipment and $12,000 was depreciation on the company headquarters building.
F.Paid $4,000 for various supplies that it used in the factory (oil and materials used in machine maintenance).
G.Used $10,000 in prepaid corporate liability insurance.

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Definitions:

Corporate Tax Rate

The percentage of a corporation's income that it pays as taxes to the government.

CCA Class

Refers to the Canadian Classification of Capital Assets, a system used in Canada for categorizing fixed assets for tax depreciation purposes.