Factory rent 3140
1 answer:
Answer and Explanation:
The computation is shown below:
a. The direct material cost is
Screws $580
Sandpaper $135
Plastic Tubing $4170
Paint $225
Cost of Direct Material $5,110
b. The direct labor cost is
Wages paid to Assembly workers $31,000
Assembly Supervisors Salary $3,520
Wages paid to painters $8,200
Cost of Direct Labor $42,720
d. The Prime Cost is
= Direct Labor + direct material
= $42,720 + $5,110
= $47,830
c. The Manufacturing Overheads is
Factory Rent $3,140
Utilities for factory $870
Factory Insurance $1,100
Depreciation on cutting Machines $2,130
Manufacturing overhead cost $7,240
e. The conversion cost is
= Prime cost + manufacturing overhead
= $47,830 + $7,240
= $55,070
f. The total product cost is
= Conversion cost + Production cost + selling overhead
= $55,070 + $5,040 $1,070 + $2,180 + $1,210
= $64,570
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