Answer:
(a) Manufacturing overhead = $176,700
(b) Product costs = $390,400
(c) Period costs = $72,390
Explanation:
a. The computation of the manufacturing overhead is shown below:
= Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs+ Factory manager salary
= $17,000 + $13,950 + $2,600 + $49,900 + $82,600 + $2,350 + $8,300
= $176,700
b. The computation of the product cost is shown below:
= Direct materials used + Direct labor + manufacturing overhead
= $141,700 + $72,000+ $176,700
= $390,400
c. The computation of the period cost is shown below:
= Sales salaries + Depreciation on delivery trucks + Repairs to office equipment + Advertising + Office supplies used
= $47,500 + $4,700 + $1,900 + $15,500 + $2,790
= $72,390
