Question

requirement 1. assuming the cost object is an airplane, classify each cost as one of the following: direct material (dm), direct labor (dl), indirect labor (il), indirect materials (im), other manufacturing overhead (other moh), or period cost. what is the total for each type of cost? (enter amounts in thousands as provided to you in the problem statement, x. if an input field is not used in the table leave the input field empty, do not enter a zero.)
a. airplane seats
b. production supervisors’ salaries
c. depreciation on forklifts in factory
d. machine lubricants
e. factory janitors’ wages
f. assembly workers’ wages

Explanation:

Step1: Classify Airplane seats

Airplane seats are a physical component directly used to build the airplane, so they are direct material (DM).

Step2: Classify Production supervisors' salaries

Supervisors oversee factory work but do not directly build the airplane; this is indirect labor (IL).

Step3: Classify Forklift depreciation (factory)

Forklifts are factory equipment; their depreciation is part of other manufacturing overhead (Other MOH).

Step4: Classify Machine lubricants

Lubricants are used in factory machines but are not a direct component of the airplane, so they are indirect materials (IM).

Step5: Classify Factory janitors' wages

Janitors maintain the factory but do not directly work on the airplane; this is indirect labor (IL).

Step6: Classify Assembly workers' wages

Assembly workers directly construct the airplane, so this is direct labor (DL).

Answer:

Cost Item	DM	DL	IM	IL	Other MOH	Period
b. Production supervisors' salaries				X
c. Depreciation on forklifts in factory					X
d. Machine lubricants			X
e. Factory janitors' wages				X
f. Assembly workers' wages		X