50) Below is a list of expenses (direct and indirect). You are to determine the total direct cost for departments A and B.

 

Salary Expense$ 80,000

Depreciation Expense –

Equipment4,000

Depreciation Expense –

Building24,000

Heating Expense1,800

Lighting Expense2,400

Cleaning & Maintenance Expense900

 

Department                              [A]                  [B]   

Cost of Goods Sold$100,000$300,000

Employees26

Value of Equipment in each area$ 8,000$ 12,000

Square footage of use200 sq. ft.400 sq. ft.

 

Direct cost for department A $ ________ B $ ________

 

Below is a list of expenses; you are to identify each as either [1] a direct expense or [2] an indirect expense.

 

51) Electricity for the stove in a restaurant.________

 

52) Paint for the restaurant dining room.________

 

53) Rent paid for the building.________

54) Wages paid to the restaurant wait staff.________

 

55) Electricity for the general lighting in a store._______

 

56) Paint sold by the hobby department.________

 

57) General employee insurance.________

 

58) Rent paid for the freezers in the frozen foods department of a food store.________

 

59) Insurance paid on employees working in high risk areas of a machine shop.________

60) Wages paid to the mechanics of an automobile repair shop.________

 

 



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