Question

Happy Feet Running Company manufactures running shoes and has the following costs during the past​ month: Rubber used to make the product Gel used to make the product Fabric used to make the product Lubricants used in the factory equipment Glue used to make the product 850 Wages paid to maintenance workers in the factory Wages paid to assembly line workers ​10,000 Wages paid to factory supervisor Wages paid to CFO ​25,000 Depreciation on factory equipment Depreciation on the accounting​ department's computers ​3,000 Depreciation on the sales force vehicles Utilities for factory Cost of shipping to customers Property tax on factory equipment ​1,000 Property insurance for the factory Cardboard material to box each pair of shoes ​6,250 Commissions paid to sales force Office supplies for accounting department 250 Janitorial supplies for the factory What is the total for direct labor costs for Happy Feet Running Company for the​ month?

Answer 1

Answer:

$10,000

Explanation:

direct materials:

• Rubber used to make the product
• Gel used to make the product
• Fabric used to make the product  
• Glue used to make the product

direct labor:

• Wages paid to assembly line workers $​10,000

direct labor costs includes only the wages paid to the employees that manufacture the goods

overhead costs:

• Lubricants used in the factory equipment
• Wages paid to maintenance workers in the factory
• Wages paid to factory supervisor
• Depreciation on factory equipment
• Utilities for factory
• Property tax on factory equipment ​
• Property insurance for the factory
• Cardboard material to box each pair of shoes
• Janitorial supplies for the factory

selling and administrative:

• Wages paid to CFO
• Depreciation on the accounting​ department's computers ​
• Depreciation on the sales force vehicles
• Cost of shipping to customers
• Commissions paid to sales force
• Office supplies for accounting department