What are the direct and indirect costs involved with manufacturing Oscars? Original blog posting (May 12, 2014)

R.S. Owens, a company in Chicago, produces the “Oscars” statues Officially named the “Academy Award of Merit” Weigh 8.5 pounds Take three to four weeks to manufacture

Video of how Oscars are made http://money.cnn.com/video/news/2014/02/28/ho w-an-oscar-is-made.cnnmoney/index.html

Question 1 What direct materials are used in the production of Oscars?

Question 2 Is there any direct labor involved in the production of Oscars?  If so, what tasks are done by the workers classified as direct labor?

Question 3 What indirect labor would be involved in the production of Oscars?

Question 4 What other indirect manufacturing costs do you think would be incurred in the production of Oscars?  Use your imagination.

Question Recap What direct materials are used in the production of Oscars? Is there any direct labor involved in the production of Oscars?  If so, what tasks are done by the workers classified as direct labor? What indirect labor would be involved in the production of Oscars? What other indirect manufacturing costs do you think would be incurred in the production of Oscars?  Use your imagination.

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Related video resources can be found at http://www.youtube.com/user/accountingheadlines Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu