(Product cost classifications) In June 2010, Carolyn Gardens incurred the following costs. One of several projects in process during the month was a landscaped terrace for Pam Beattie. Relative to the Beattie landscaping job, classify each of the costs as direct material, direct labor, or overhead. The terrace required two days to design and one five day work week to complete. Some costs may not fit entirely into a single classification; in such cases, and if possible, provide a systematic and rational method to allocate such costs.
| Mulch purchased for Beattie’s landscaping Don't use plagiarized sources. Get Your Custom Essay on provide a systematic and rational method to allocate such costs 641222 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! | $ 320 |
| June salary of Z. Trumble, the landscape designer, who worked 20 days in June | 3,000 |
| Construction permit for Beattie’s landscaping | 95 |
| Gardeners’ wages; all worked on Beattie’s landscaping; gardeners work eight hours per day, five days per week; 20 working days in June | 3,840 |
| June depreciation on the company loader, driven by a gardener and used on Beattie’s landscaping one day | 200 |
| Landscaping rock purchased for Beattie’s landscaping | 1,580 |
| June rent on Carolyn Gardens offices, where Z. Trumble has an office that occupies 150 square feet of 3,000 total square feet | 2,400 |
| June utility bills for Carolyn Gardens | 1,800 |
| Plants and pots purchased for Beattie’s landscaping | 1,950 |
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