Direct manufacturing costs for a leather Lazy Boy recliner include:Question 18Select one:a.cost of leatherb.depreciation on Lazy Boy recliner shop furniturec.design costs of Lazy Boy reclinerd.salary paid to Lazy Boy Vice-President of Sales
Question
Direct manufacturing costs for a leather Lazy Boy recliner include:Question 18Select one:a.cost of leatherb.depreciation on Lazy Boy recliner shop furniturec.design costs of Lazy Boy reclinerd.salary paid to Lazy Boy Vice-President of Sales
Solution
The direct manufacturing costs for a leather Lazy Boy recliner would include:
a. Cost of leather: This is a direct cost as it is directly involved in the production of the recliner. The leather is a primary material in the manufacturing process.
b. Depreciation on Lazy Boy recliner shop furniture: This is not a direct cost. Depreciation on shop furniture is an indirect cost as it does not directly contribute to the production of the recliner.
c. Design costs of Lazy Boy recliner: This is a direct cost. The design of the recliner is a significant part of the manufacturing process. Without the design, the recliner cannot be produced.
d. Salary paid to Lazy Boy Vice-President of Sales: This is not a direct cost. The salary of the Vice-President of Sales is an administrative expense, not a manufacturing cost. The VP of Sales does not directly contribute to the production of the recliner.
So, the direct manufacturing costs for a leather Lazy Boy recliner include the cost of leather and the design costs of the Lazy Boy recliner.
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