The administrators of Crawford Country's Memorial Hospital are interested in identifying the Various costs and expenses that are incurred in producing a patient's X-ray. A list of such costs and expenses is presented below.
- Salaries for the X-ray machine technicians.
- Wages for the hospital janitorial personnel
- Film costs for the X-ray machines
- Property taxes on the hospital building.
- Salary of the X-ray technicians' supervisor.
- Electricity costs for the X-ray department.
- Maintenance and repairs on the X-ray machines.
- X-ray department supplies.
- Depreciation on the X-ray department equipment.
- Depreciation on the hospital building.
The administrator want these costs and expenses classified as (a) Direct materials, (b) Direct labor, or (c) Service overhead
Instructions
List the items (1) through (10). For each item, indicate the cost category to which it belongs.
Solution
- (b) Direct labor
- (c) Service overhead
- (a) Direct materials
- (c) Service overhead
- (c) Service overhead
- (c) Service overhead
- (c) Service overhead
- (a) Direct materials
- (c) Service overhead
- (c) Service overhead