Question

Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: Rent on manufacturing facility $ 134,000​ Office manager's salary 84,000​ Wages of factory machine operators 64,000​ Depreciation on manufacturing equipment 34,000​ Insurance and taxes on selling and administrative offices 24,000​ Direct materials purchased and used 94,000​ Based on the above information, the amount of period costs shown on Steuben's income statement is:

Answer 1

Answer: $108,000

Explanation:

Given that,

Rent on manufacturing facility = $ 134,000

Office manager's salary = 84,000

Wages of factory machine operators = 64,000

Depreciation on manufacturing equipment = 34,000​

Insurance and taxes on selling and administrative offices = 24,000

Direct materials purchased and used = 94,000

Period costs are the costs which are incurred for activities not related to manufacturing.​

Therefore,

Period costs includes:

= Office manager's salary + Insurance and taxes on selling and administrative offices

= 84,000 + 24,000

= $108,000