High School

Indicate whether the following costs of manufacturing ice cream would be classified as direct materials (DM), direct labor (DL), or factory overhead (FO):

1. Milk, sugar, and eggs - Blank 1
2. Wages of mixing department employee - Blank 2
3. Utilities cost - Blank 3
4. Depreciation of machines - Blank 4
5. Maintenance supplies - Blank 5

a) DM, DL, FO, FO, FO
b) DM, FO, FO, FO, FO
c) DM, DL, FO, FO, DL
d) DM, DL, FO, DL, FO

Answer :

Final answer:

The costs associated with manufacturing ice cream are classified as direct materials for ingredients like milk, sugar, and eggs; direct labor for wages of the mixing department employee; and factory overhead for utilities, depreciation of machines, and maintenance supplies. The correct option is a.

Explanation:

The classification of the manufacturing costs for ice cream as direct materials (DM), direct labor (DL), or factory overhead (FO) is as follows:

Milk, sugar and eggs - Direct Materials (DM)

Wages of mixing department employee - Direct Labor (DL)

Utilities cost - Factory Overhead (FO)

Depreciation of machines - Factory Overhead (FO)

Maintenance supplies - Factory Overhead (FO)

Therefore, the correct answer is a) DM, DL, FO, FO, FO.