Match the items below for a bakery to the type of cost (a-d). Answers may be used more than once.
-Cupcake mix
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost
Challenging

Question

Quizplus · Accepted Answer

Cupcake mix is a direct material because it is a crucial ingredient in the production of cupcakes.

Answer: C 
 Cupcake mix could also be considered factory overhead if it is used in the mixing and baking process and not directly added to the cupcakes.

Answer: D 
 Cupcake mix could also be considered a nonmanufacturing cost if it is used in the production of cakes, pastries, or other baked goods that are not cupcakes.

Match the Items Below for a Bakery to the Type