Question 1

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given.a.Direct
b.Indirect
-The production labor wages for the bar stool assemblers

Accepted Answer

The production labor wages for the bar stool assemblers would typically be considered a direct cost because it directly contributes to the production of the bar stools.

Question 2

Match the items below for a bakery to the type of cost (a-d).
-Cupcake mix
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost

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.

Question 3

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Factory rent
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

Accepted Answer

Factory rent is considered a factory overhead cost because it is an indirect cost associated with the production process but cannot be directly traced to the production of specific goods.

Question 4

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Frosting
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

Accepted Answer

Frosting is considered a direct material because it is a primary ingredient used in the production of bakery items and can be directly traced to the finished product.

Question 5

Match the items below for a bakery to the type of cost (a-d).
-Depreciation expense-office
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost

Accepted Answer

Depreciation expense on office equipment is considered a nonmanufacturing cost because it is not directly associated with the production process. Nonmanufacturing costs are expenses that are not directly tied to the manufacturing of products, including selling, general, and administrative expenses.

Question 6

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Salesperson commissions
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

Accepted Answer

Salesperson commissions are considered nonmanufacturing costs because they are not directly involved in the production process but rather in the selling and administrative activities of the business.

Question 7

Match the items below for a bakery to the type of cost (a-d).
-Depreciation expense-factory
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost

Accepted Answer

Depreciation expense of factory equipment is considered a factory overhead cost, along with other indirect costs associated with manufacturing baked goods.

Answer: A, B, D
 Direct materials and direct labor costs directly relate to the production of baked goods, while nonmanufacturing costs may include expenses such as advertising, rent for the storefront, and office supplies.

Question 8

Match the items below for a bakery to the type of cost (a-d).
-Factory rent
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost

Accepted Answer

Factory rent is considered a factory overhead cost because it is an indirect cost associated with the production process but cannot be directly traced to the production of specific goods.

Question 9

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given.a.Direct
b.Indirect
-The factory supervisor's salary for the bar stool factory

Accepted Answer

The factory supervisor's salary is an indirect cost because it cannot be directly traced to the production of a specific bar stool. It is part of the general overhead costs of the factory.

Question 10

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Cupcake mix
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

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.

Question 11

Match the items below for a bakery to the type of cost (a-d).
-Frosting
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost

Accepted Answer

Frosting is considered a direct material because it is a primary ingredient used in the production of bakery items and can be directly traced to the finished product.

Question 12

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Sprinkles for decoration (indirect material)
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

Accepted Answer

Sprinkles for decoration, when classified as indirect material, are considered part of the factory overhead costs. This is because they are used in the production process but cannot be directly traced to the production of a specific product in a cost-effective way.

Question 13

Match the items below for a bakery to the type of cost (a-d).
-Baker's wages
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost

Accepted Answer

Baker's wages are considered direct labor because they are directly involved in the production of the bakery goods.

Question 14

Match the items below for a bakery to the type of cost (a-d).
-Sprinkles for decoration (indirect material)
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost

Accepted Answer

Sprinkles for decoration, when classified as indirect material, are considered part of the factory overhead costs. This is because they are used in the production process but cannot be directly traced to the production of a specific product in a cost-effective way.

Question 15

Match the items below to the type of cost (a or b).
-Plant insurance expired
A)Product cost
B)Period cost

Accepted Answer

The answer of Match the items below to the type...

Question 16

Match the items below to the type of cost (a or b).
-Depreciation on factory machinery
A)Product cost
B)Period cost

Accepted Answer

Depreciation on factory machinery is directly associated with the cost of producing goods and therefore is considered a product cost.

Question 17

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Baker's wages
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

Accepted Answer

Baker's wages are considered direct labor because they are directly involved in the production of the bakery goods.

Question 18

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Depreciation expense-factory
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

Accepted Answer

Depreciation expense of factory equipment is considered a factory overhead cost, along with other indirect costs associated with manufacturing baked goods.

Answer: A, B, D
 Direct materials and direct labor costs directly relate to the production of baked goods, while nonmanufacturing costs may include expenses such as advertising, rent for the storefront, and office supplies.

Question 19

Match the items below for a bakery to the type of cost (a-d).
-Salesperson commissions
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost

Accepted Answer

Salesperson commissions are considered nonmanufacturing costs because they are not directly involved in the production process but rather in the selling and administrative activities of the business.

Question 20

The following are some of the costs incurred by Cupcake Company. Identify them as either:
-Depreciation expense-office
A)Prime costs
B)Conversion costs
C)Both prime and conversion costs
D)Neither prime nor conversion costs

Accepted Answer

Depreciation expense on office equipment is considered a nonmanufacturing cost because it is not directly associated with the production process. Nonmanufacturing costs are expenses that are not directly tied to the manufacturing of products, including selling, general, and administrative expenses.

Quiz 15: Introduction to Managerial Accounting

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given.a.Direct b.Indirect -The production labor wages for the bar stool assemblers

Match the items below for a bakery to the type of cost (a-d). -Cupcake mix A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Factory rent A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Frosting A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

Match the items below for a bakery to the type of cost (a-d). -Depreciation expense-office A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Salesperson commissions A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

Match the items below for a bakery to the type of cost (a-d). -Depreciation expense-factory A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost

Match the items below for a bakery to the type of cost (a-d). -Factory rent A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given.a.Direct b.Indirect -The factory supervisor's salary for the bar stool factory

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Cupcake mix A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

Match the items below for a bakery to the type of cost (a-d). -Frosting A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Sprinkles for decoration (indirect material) A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

Match the items below for a bakery to the type of cost (a-d). -Baker's wages A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost

Match the items below for a bakery to the type of cost (a-d). -Sprinkles for decoration (indirect material) A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost

Match the items below to the type of cost (a or b). -Plant insurance expired A)Product cost B)Period cost

Match the items below to the type of cost (a or b). -Depreciation on factory machinery A)Product cost B)Period cost

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Baker's wages A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Depreciation expense-factory A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

Match the items below for a bakery to the type of cost (a-d). -Salesperson commissions A)Direct materials B)Direct labor C)Factory overhead D)Nonmanufacturing cost

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Depreciation expense-office A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs