Reference no: EM133348337

Question: What would be a good opening statement that includes the three main categories of costs that organizations incur: DM, DL and OH. Should include specifics that reflect the definitions of costs.

I need a few sentences to discuss each of the following expenses. And to classify each expense if it is DM, DL or OH and why it is this classification. Classify each of these items as direct materials, direct labor, or overhead, and provide the rationale for your classification decision.

Which category do each of the following into? Direct materials (DM), direct labor (DL), or overhead (OH).

• Glue used to attach labels to bottles containing a patented medicine.
• Compressed air used in operating paint sprayers for Student Painters, a company that paints houses and apartments.
• Insurance on a factory building and equipment.
• A production department supervisor's salary.
• Rent on factory machinery.
• Iron ore in a steel mill.
• Oil, gasoline, and grease for forklift trucks in a manufacturing company's warehouse.
• Services of painters in building construction.
• Cutting oils used in machining operations.
• Cost of paper towels in a factory employees' washroom.
• Payroll taxes and fringe benefits related to direct labor.
• The plant electricians' salaries.
• Crude oil to an oil refinery.
• Copy editor's salary in a book publishing company.