Campus Carriers Co manufactures and sells backpacks to colle

Campus Carriers Co. manufactures and sells backpacks to college students. Campus Carriers operates a manufacturing facility in Small Town. Classify the following costs incurred by Campus Carriers Co. as Direct Materials, Direct Labor, Factory Overhead or Selling and Administrative Expense.

a. Canvas fabric.

b. Sewing machine operator’s wages.

c. Building depreciation on the factory building.

d. Thread.

e. Factory manager’s salary.

f. Electricity to power sewing machines.

g. Automobile expense for customer service representatives.

Solution

here the cost for every operation depends on their work

cost of canvas fabric costs a little high if we took that in a bulk manner then the cost would be a little bit lower.

for schewing machine operators the wage should be given on hours based and also it should be fixed based upon the work.

building cost should be high based upon raw materias building should be considered and also based on area the cost will be there. it is better to be take far from the city because schewing machine produces sounds.

based on industry area and selling areas the automobile expense will be there and also manager sal will be decided by the industry wheather it s a small scale or large scale and also his experieces.

electricity bill would be little higher