The Giga Company Produces Tablet Computers

question 6

Essay

The Giga Company produces tablet computers. The following information is provided:
Required:
Classify each of the company's costs as a period cost (general, selling, and administrative cost) or as a direct or indirect product cost. Enter the dollar amount of the cost in the appropriate column. After entering all amounts, calculate the total general, selling, and administrative cost, the total direct product cost, and the total indirect product cost. $\begin{array}{lr}\text { a) Materials used } & \$ 216,000 \\\text { b) Advertising } & \$ 40,000 \\\text { c) Insurance, factory } & \$ 20,000 \\\text { d) Administrative salaries } & \$ 50,000 \\\text { e) Property taxes, factory } & \$ 12,000 \\\text { f) Utilities, administrative building } & \$ 22,000 \\\text { g) Factory labor } & \$ 80,000 \\\text { h) Sales commissions } & \$ 56,000 \\\text { i) Factory supervisor's salary } & \$ 60,000 \\\text { j) Research and development } & \$ 18,000 \\\text { k) Depreciation, factory } & \$ 12,000 \\\text { 1) Depreciation, office } & \$ 8,000 \\\text { m) Indirect materials } & \$ 14,000\end{array}$ $$\begin{array} { | l | l | l | l | } \hline { \text { Item } } & \text { Period cost } & \text { Direct product cost } & \text { Indirect product cost } \\\hline \text { a) } & & & \\\hline \text { b) } & & & \\\hline \text { c) } & & & \\\hline \text { d) } & & & \\\hline \text { e) } & & & \\\hline \text { f) } & & & \\\hline \text { g) } & & & \\\hline \text { h) } & & & \\\hline \text { i) } & & & \\\hline \text { i) } & & & \\\hline \text { k) } & & & \\\hline \text { l) } & & & \\\hline \text { m) } & & & \\\hline \text { Total } & & & \\\hline\end{array}$$

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Definitions:

Performance Accountability

Involves holding employees or organizations responsible for achieving performance objectives and standards.

Performance Feedback

The process of providing constructive information and evaluations to employees about their work performance.

J. Richard Hackman

A renowned social and organizational psychologist known for his work on team dynamics and leadership effectiveness.

Core Job Characteristics

Fundamental aspects of a job that affect an employee’s motivation, satisfaction, and performance, such as skill variety, task significance, and autonomy.