Answer:
The Direct Material Costs =$ 153,740
Explanation:
Mariposa Manufacturing
Direct Material Costs are those costs that are directly used in the manufacture of the product. In manufacturing wooden cabinets , wood and hardware(slides, handles, etc) are used directly. So
The Direct Material Costs = Cost of hardware (slides, handles, etc) $ 33,800
+ Cost of wood $ 116,100 + Glue** = $ 149,900 +$ 3,840 = $ 153,740
In certain cases glue is considered an indirect material but in some it is a direct material.
WORKING:
Cost of hardware (slides, handles, etc) $ 33,800
Cost of wood $ 116,100
Depreciation on production equipment $ 31,700 (FOH)
Factory property taxes $ 17,100 (FOH)
Factory rent $ 38,900 (FOH)
Glue $ 3,840
Production supervisor salary $ 42,000 (FOH)
Sales manager salary $ 41,900
Utilities for factory $ 24,000 (FOH)
Wages for maintenance workers $ 31,500
Wages of assembly workers $ 91,500
Wages of finishing workers $ 77,800
Advertising $ 35,300
