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Depreciation on buildings

Depreciation on equipment

Maintenance- cleaning the building, coating the tables with beeswax, soaking tools in water, coating inside of molds

Supplies- hollow blowing irons, wooden tools (block, driver), molds, heat resistant scissors, acetylene torch,diamond coated steel grinder

Supervision- when hiring new apprentices Nova Scotian Crystal requires they train and study under experienced craftsmen for five years before they themselves become craftsmen.

Electricity, heat and other power associated with the building

Property taxes

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In the production of crystal wine glasses a process costing system would be used. This is due to the fact that the wine glasses are (typically)* not considered to be customized or a made to order product which are the characteristics of a product that would use job order costing. Instead, the crystal wine glasses are usually (as the video example shows) produced through a series of processes and when one process is completed the glasses are transferred to another process area. In the case of the wine glasses the different processes include blending, forming, shaping and cutting.

*However, the Job- Order Costing method could also be used in an instance when an order is placed for a customized wine glass where rpersonalizations can be etched into the crystal at the buyers request.

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Manufacturing Overhead is all productions costs other than direct materials and direct labor that are associated with manufacturing firms.

Answer: TRUE

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In this video, the product that is being produced is a crystal wine glass featuring a Titanic design which is cut by free hand. The company that is being shown is Nova Scotian Crystal. Along with wine glasses the company is also responsible for producing several other crystal products ranging from other types of to drink wear to trophies for different competitions.

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Discovery / Science Channel's "How It's Made" Crystal Wine Glasses episode