PE 18-2B Direct materials, direct labor, and factory overhead

Identify the following costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher.

a. Staples used to bind magazines
b. Wages of printing machine employees
c. Maintenance on printing machines
d. Paper used in the magazine

Answer:
a.    DM (or FO if the cost is immaterially small)
b.    DL
c.    FO
d.    DM