Craig Manufacturing Company operates its three production departments within a single facility. Each department produces its own products and maintains its own production equipment. Although they share a common facility, each department is overseen by a separate supervisor. Which one of the following costs is a direct cost of each department?

a. Lease payment on facility

b. Depreciation on the facility

c. Production supervisor salary

d. Plant manager salary

Question

Tony Cabrera

Business

17 January, 16:06

Craig Manufacturing Company operates its three production departments within a single facility. Each department produces its own products and maintains its own production equipment. Although they share a common facility, each department is overseen by a separate supervisor. Which one of the following costs is a direct cost of each department?

a. Lease payment on facility

b. Depreciation on the facility

c. Production supervisor salary

d. Plant manager salary

+5

Answers (1)

Know the Answer?

Danika Crosby · Answer 1

Craig Manufacturing Company operates its three production departments within a single facility. Each department produces its own products and maintains its own production equipment. Although they share a common facility, each department is overseen by a separate supervisor. Which one of the following costs is a direct cost of each department?

Production supervisor salary

Explanation:

Production supervisor salary serves as the overhead cost that is attribute to the production in the manufacturing company, it is direct cost for each department since every department has a supervisor