Required:
Determine each of the following:
1. Direct Material
2. Direct Labor
3. Manufacturing Overhead
4. Total Manufacturing Cost
5. Total Period Cost
6. Total Variable Cost
7. Total Fixed Cost
Answer:
1. Direct Material = $24,500
2. Direct Labor = $22,000
3. Manufacturing Overhead = $6,500
4. Total Manufacturing Cost = $53,000
5. Total Period Cost = $16,290
6. Total Variable Cost = $44,500
7. Total Fixed Cost = $22,790
Explanation:
- Advertising cost for monthly television ads $ 5,400
- Attachable keyboard 19,400
- Insurance for delivery truck 540
- Factory supervisor's salary 3,450
- Marketing manager's salary 3,150
- Assembly worker wages 22,000
- Miscellaneous soldering material used to seal case 950
- Hourly wages for factory security guard 2,100
- CEO's salary 7,200
- Speakers 5,100
direct materials: attachable keyboards $19,400 + speakers $5,100 = $24,500
direct labor: assembly workers wages $22,000
manufacturing overhead: factory supervisor's salary $3,450 + miscellaneous soldering material $950 + hourly wages for security guard $2,100 = $6,500
total manufacturing cost: direct materials + direct labor + manufacturing overhead = $24,500 + $22,000 + $6,500 = $53,000
total period cost: advertising cost for monthly television ads $5,400 + insurance for delivery truck $540 + marketing manager's salary 3,150 + CEO's salary $7,200 = $16,290
total variable cost: direct materials + direct labor = $24,500 + $22,000 = $44,500
total fixed cost: manufacturing overhead + total period costs = $6,500 + $16,290 = $22,790