The administrators of San Diego County’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 in presented below.
1. Salaries for the X ray machine technicians.
2. Wages for the hospital janitorial personnel.
3. Film costs for the X ray machines.
4. Property taxes on the hospital building.
5. Salary of the X ray technicians’ supervisor.
6. Electricity costs for the X ray department.
7. Maintenance and repairs on the X ray machines.
8. X ray department supplies.
9. Depreciation on the X ray department equipment.
10. Depreciation on the hospital building.
The administrators 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 the item belongs.