Sturbridge Company manufactures fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. Which of the following should not be treated as direct costs, assuming the cost object is individual clocks? a. The clock face
b. The timing mechanism for each clock
c. Wood
d. Depreciation on dock-making equipment

D)depreciation on clock making equipment

Explanation:

From the question we are informed about Sturbridge Company manufactures who fine furniture and grandfather clocks. Sturbridge has an excellent reputation, and each grandfather clock sells for several thousand dollars. In this case, all the following should be treated as direct costs, assuming the cost object is individual clocks;

✓ The clock face

✓The timing mechanism for each clock

✓Wood

A direct cost can be regarded as price which can be tied directly to manufacture of particular goods or services. Direct and indirect costs can be regarded as two major types of costs that can be incurred by companies. Direct costs are been regarded as variable costs often, i.e this cost could fluctuate as q result of production levels like inventory.

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30

decrease in total operating income of $45,000