Answer and Explanation:
The computation is shown below:
a. For delivery service product cost
Indirect materials $7,000
Depreciation on delivery equipment $12,000
Dispatcher's salary $5,400
Gas and oil for delivery trucks $2,900
Drivers' salaries $16,900
Delivery equipment repairs $450
Total $44,650
The product cost includes direct material, direct labor and factory overhead cost which are used to make the product
b) Period costs:
Property taxes on office building $930
CEO's salary $12,500
Advertising $5,100
Office utilities $11,050
Repairs on office equipment $270
Total $29,850
The period cost includes majorly part of the selling and admin expense and it also recorded those expenses which are incurred according to the passage of time
