question archive Office Wood Company manufactures office furniture
Office Wood Company manufactures office furniture
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Office Wood Company manufactures office furniture. Recently, the company decided to develop a formal cost accounting system. The company is currently converting all costs into classifications related to its manufacturing processes. Required: (15 marks) For the following items, label each (with an X) as one of the following: • direct cost tracing of the finished furniture, • indirect cost allocation of an indirect manufacturing cost to the finished furniture, or • a nonmanufacturing item. Direct Cost Tracing Indirect Cost Nonmanu- Allocation facturing Item Carpenter wages Amortization office building Glue for assembly Lathe department supervisor Lathe amortization Lathe maintenance Lathe operator wages Lumber Sales staff wages Metal brackets for drawers Washroom supplies
