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Estep Construction Co. is composed of two divisions: (1) Home Construction and (2) Commerical Construction. The Home Construction Division is in the process of building 12 houses and the Commerical Construction Division is working on 3 projects. Cost items of the company follows:
Cost of building permitsMaterials used in commerical construction projectsDeprication on home building equipment(small tools such as hammers or saws)Company president's salaryDepreciation on home office buildingSalary of corporate office managerWages of workers assigned to a specific construction projectSupplies used by the Commerical Construction DivisionLabor on a particular houseSalary of the supervisor of commerical construction projectsSupplies, such as glue and nails, used by the Home Construction Division
Required
a. Identify each cost as being a direct or indirect cost assuming the cost objects are the indivdual products (houses or projects)b. Identify each cost as being as being a direct or indirect cost, assuming the cost are the two divisions.c. Identify each cost as being a direct or indirect cost assuming the cost object is Estep Construction Company as a whole.
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