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 permits
Materials used in commerical construction projects
Deprication on home building equipment(small tools such as hammers or saws)
Company president's salary
Depreciation on home office building
Salary of corporate office manager
Wages of workers assigned to a specific construction project
Supplies used by the Commerical Construction Division
Labor on a particular house
Salary of the supervisor of commerical construction projects
Supplies, 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.