Answer:
Instructions are listed below
Explanation:
- Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.
- Direct labor is production or services labor that is assigned to a specific product, cost center, or work order.
- Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.
- Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.
In this exercise:
Direct Material:
Airplane seats . . . . . . . . . . . . . . . . . . . . . . . . . $220
Jet engines . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,700
Total= $1920
Direct labor:
Assembly workers' wages . . . . . . . . . . . . . . . . . . . $600
Machine operators' health insurance . . . . . . . . . . $40
Total= $640
Indirect labor:
Production supervisors' salaries . . . . . . . . . . . . . . $170
Factory janitors' wages . . . . . . . . . . . . . . . . . . . . . $60
Total= $230
MOH:
Machine lubricants . . . . . . . . . . . . . . . . . . . . . $35
Plant utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $160
Depreciation on forklifts . . . . . . . . . . . . . . . . . . . . $110
Total= $305
Period cost:
Property tax on corporate marketing office . . . . . $25
Cost of warranty repairs . . . . . . . . . . . . . . . . . . . . $230
Depreciation on administrative offices . . . . . . . . . $60
Cost of designing new plant layout . . . . . . . . . . . . $165
Total= $480
