C00 ezto mheducation.com/hm.tpx?-0.2336328228491905 1528570814277 E1-8 Classifyi
ID: 2407395 • Letter: C
Question
C00 ezto mheducation.com/hm.tpx?-0.2336328228491905 1528570814277 E1-8 Classifying and Calculating Costs IL0 1-4] The following information is available for Wonderway, Inc., for 2015: Factory rent Company advertising Wages paid to laborers Depreciation for president's vehicle Indirect production labor Utilities for factory Production supervisor's salary President's salary Direct materials used Sales commissions Factory insurance Depreciation on factory equipment 28,900 20,400 84,500 8,030 1,840 31,400 30,700 60,500 34,700 7,500 13,400 27,000 Required: 1. Calculate the direct labor cost for Wonderway. Direct Labor Cost 2. Calculate the manufacturing overhead cost for Wonderway. Manufacturing OverheadExplanation / Answer
Answer 1.
Direct Labor Cost = Wages Paid to Laborers
Direct Labor Cost = $84,500
Answer 2.
Manufacturing Overhead Cost = Factory Rent + Indirect Production Labor + Utilities for Factory + Production Supervisory’s Salary + Factory Insurance + Depreciation on Factory Equipment
Manufacturing Overhead Cost = $28,900 + $1,840 + $31,400 + $30,700 + $13,400 + $27,000
Manufacturing Overhead Cost = $133,240
Answer 3.
Prime Cost = Direct Materials Used + Direct Labor Cost
Prime Cost = $34,700 + $84,500
Prime Cost = $119,200
Answer 4.
Conversion Cost = Direct Labor Cost + Manufacturing Overhead Cost
Conversion Cost = $84,500 + $133,240
Conversion Cost = $217,740
Answer 5.
Total Manufacturing Costs = Direct Materials Used + Direct Labor Cost + Manufacturing Overhead Cost
Total Manufacturing Costs = $34,700 + $84,500 + $133,240
Total Manufacturing Costs = $252,440
Answer 6.
Period Expenses = Company Advertising + Depreciation for President’s Vehicle + President’s Salary + Sales Commission
Period Expenses = $20,400 + $8,030 + $60,500 + $7,500
Period Expenses = $96,430
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