required: for each cost, indicate whether it would most likely be classified as direct materials, direct…

required: for each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, selling, or an administrative cost. 1. the cost of a hard drive installed in a computer. direct labor cost direct materials cost manufacturing overhead cost selling cost administrative cost 2. the cost of advertising in the puget sound computer user newspaper. direct labor cost direct materials cost manufacturing overhead cost selling cost administrative cost 3. the wages of employees who assemble computers from components. direct labor cost direct materials cost manufacturing overhead cost selling cost

required: for each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, selling, or an administrative cost. 1. the cost of a hard drive installed in a computer. direct labor cost direct materials cost manufacturing overhead cost selling cost administrative cost 2. the cost of advertising in the puget sound computer user newspaper. direct labor cost direct materials cost manufacturing overhead cost selling cost administrative cost 3. the wages of employees who assemble computers from components. direct labor cost direct materials cost manufacturing overhead cost selling cost

Answer

Brief Explanations:

  1. A hard - drive is a key component in a computer. Direct materials are the physical components that go into the final product. So, the cost of a hard - drive installed in a computer is a direct materials cost.
  2. Advertising cost is related to promoting the company's products or services. It is not directly involved in the manufacturing process but in getting the product to the market, so it is a selling cost.
  3. The wages of employees who assemble computers are directly related to the production process. They are laborers working directly on the product, so it is a direct labor cost.

Answer:

  1. Direct materials cost
  2. Selling cost
  3. Direct labor cost