Answer: See explanation
Explanation:
a. Calculate the direct labor cost for Wonderway.
This will be the wages paid to laborers which is $84,000.
b. Calculate the manufacturing overhead cost for Wonderway.
Factory rent = $29,600
Add: Indirect production labor = $1,860
Add: Utilities for factory = $30,100
Add: Production supervisor's salary = $30,800
Add: Factory insurance = $12,200
Add: Depreciation on factory equipment = $26,600
Manufacturing overhead cost = $131160.
c. Calculate the prime cost for Wonderway.
Direct materials used = $36,200
Add: Wages = $84,000
Prime cost = $36200 + $84000 = $120200
d. Calculate the conversion cost for Wonderway.
Wages paid to laborers = $84,000
Add: Manufacturing overhead = $131160
Conversion cost = $215160
e. Calculate the total manufacturing cost for Wonderway.
Direct materials used = $36,200
Add: Wages paid to laborers = $84,000
Add: Manufacturing overhead = $131160
Total manufacturing cost = $251360
f. Calculate the period expenses for Wonderway.
Company advertising = $20,700
President's salary = $62,000
Add: Depreciation= $8,180
Add: Sales commissions = $7,700
Period cost = $98580
