Direct materials, direct labor, or manufacturing overhead

Roberts Shirts is a producer of men’s, women’s, and children’s shirts. Roberts expects to incur the following production costs. Determine whether each of the costs is direct materials, direct labor, or manufacturing overhead. Use DM for direct materials, DL for direct labor, and MOH for manufacturing overhead.

________ A. Salary of the pattern cutter

________ B. Wages of the sewing machine operators

________ C. Cost of patterns used in production

________ D. Setup costs incurred to change production from one type of shirt to another

________ E. Cost of cloth

________ F. Costs incurred to develop patterns

________ G. Costs incurred to order and receive fabric

________ H. Cost of buttons

________ I. Cost of depreciation on the sewing machines

________ J. Cost of rent on the production facilities

________ K. Cost of thread used to sew shirts

________ L. Costs incurred to develop flame-retardant materials for children’s clothing

________ M. Salary of quality control inspector

________ N. Salary of production supervisors—one supervisor for each clothing line

________ O. Salary of vice-president of manufacturing

________ P. Insurance on the factory facilities


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