Question

Identify each cost as a period cost or a product cost. If it is a product cost, further indicate if the cost is direct materials, direct labor, or manufacturing overhead. Then determine if the product cost is a prime cost and/or a conversion cost.

10.Salary of the factory maintenance supervisor

Short answer

It is a product cost, manufacturing overhead, and conversion cost.

Step-by-step solution

Definition of manufacturing overhead

The manufacturing overhead is defined as the cost incurred by the business which includes all the indirect costs.

Identification of costs

The salary of the factory maintenance supervisor is the product cost as it involves the production of goods.

It is a manufacturing overhead cost as it is an indirect cost.

It is the conversion cost.