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24 November, 15:00

Granger Cards is a manufacturer of greeting cards. Classify its costs by matching the costs to the terms.

(1) Direct materials

(2) Direct Labor

(3) Indirect materials

(4) Indirect labor

(5) Other manufacturing overhead

(A) Artist's wages

(B) Wages of materials wharehouse workers

(C) Paper

(D) Depreciation on manufacturing equipment

(E) Manufacturing plant manager's salary

(F) Property taxes on manufacturing plant

(G) Glue for envelopes

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Answers (1)
  1. 24 November, 17:04
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    1. Direct Materials: C) Paper

    2. Direct Labor: A) Artist's wages

    3. Indirect materials: G) Glue for envelopes (this is asuming there isn't a direct association between glue, envelopes and greeting cards - which is the case that one envelope can be used for 1 card or 2 + cards indistinctly - and/or 1 glue can be used for more than 1 envelope)

    4. Indirect labor: B) Wages of materials warehouse workers; E) Manufacturing plant manager's salary

    5. Other manufacturing overhead: D) Depreciation on manufacturing equipment; F) Property taxes on manufacturing plant
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