The Costs Listed Below Are Related to a Manufacturer of All-Natural

question 129

Essay

The costs listed below are related to a manufacturer of all-natural ice cream. In the space provided, indicate whether the cost should be classified as direct materials (DM), direct labor (DL), or overhead (OH).
_____
a. Maintenance on factory building
_____
b. Cream
_____
c. Mixing department wages
_____
d. Vanilla
_____
e. Factory supervisor's salary
_____
_____ f. Machine oil for mixing machines
_____ g. Sugar
_____ h. Machine operator wages
_____ i. Factory maintenance labor
_____ j. Depreciation on factory equipment

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Definitions:

Company Data

Information and metrics related to the operations, performance, and financials of a company.

Budgeted Balance Sheet

A financial statement projected for a future date, detailing the expected financial position of a company, including assets, liabilities, and equity.

Merchandise Purchases Budget

A financial plan that estimates the cost of goods a company needs to purchase to meet its sales goals.

Sales Budget

A financial plan that estimates the expected revenue from sales for a specific period, taking into account factors like market conditions, historical sales data, and economic forecasts.