You are a member of a team auditing Crafted Furniture, LLC. The new purchasing manager has a retail background and is curious as to what the auditors mean by the classifications of manufacturing costs. Your supervisor assigns you to prepare a memo explaining the classifications of direct materials, direct labor, and overhead costs.
Type your communication in the response area below.
REMINDER: Your response will be graded for both technical content and writing skills. Technical content will be evaluated for information that is helpful to the intended reader and clearly relevant to the issue. Writing skills will be evaluated for development, organization, and the appropriate expression of ideas in professional correspondence. Use a standard business memo or letter format with a clear beginning, middle, and end. Do not convey information in the form of a table, bullet point list, or other abbreviated presentation.
To: Crafted Furniture, LLC
Re: Manufacturing Cost Elements