Categorizing costs as either direct or indirect for product


Q) Whippany manufacturing wishes to evaluate costs for each product they make at its Troy plant. Troy plant makes three products at this plant, and runs two flexible assembly lines. Each assembly line can make all three products.

Questions:

a) Categorize each of the following costs as either direct or indirect for each product

b) Categorize each of the following costs as either fixed or variable with respect to number of units produced of each product.

  Direct Indirect Fixed Variable
Assembly line labor wages ______ ______ ______ ______
Plant manager\'s wages ______ ______ ______ ______
Depreciation on the assembly line equipment ______ ______ ______ ______
Component parts for the product ______ ______ ______ ______
Wages of security personnel for the factory ______ ______ ______ ______

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Accounting Basics: Categorizing costs as either direct or indirect for product
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