Question

The PC Works assembles custom computers from components supplied by various manufacturers.

The company is very small and its assembly shop and retail sales store are housed in a single facil-

ity in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred

at the company.

Required:

For each cost, indicate whether it would most likely be classifi ed as direct labor, direct materials,

manufacturing overhead, selling, or an administrative cost.

1. The cost of a hard drive installed in a computer.

2. The cost of advertising in the Puget Sound Computer User newspaper.

3. The wages of employees who assemble computers from components.

4. Sales commissions paid to the company’s salespeople.

5. The wages of the assembly shop’s supervisor.

6. The wages of the company’s accountant.​

Answer 1

Answer:

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