The administrators of Crawford 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 is as follows.
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1.
Salaries for the X-ray machine technicians.
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2.
Wages for the hospital janitorial personnel.
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3.
Film costs for the X-ray machines.
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4.
Property taxes on the hospital building.
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5.
Salary of the X-ray technicians’ supervisor.
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6.
Electricity costs for the X-ray department.
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7.
Maintenance and repairs on the X-ray machines.
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8.
X-ray department supplies.
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9.
Depreciation on the X-ray department equipment.
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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
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