Problem
Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy's costs for the most recent month.
Depreciation on factory equipment $ 860
Depreciation on CEO's company car 110
Speakers used in the keyboard 1,150
Production supervisor's salary 2,280
Glue and screws used in the keyboards 250
Wages of persons who install the speakers 2,830
Cost to run an ad on local radio stations 670
Utilities for the factory 1,380
Personnel manager's salary 2,540
Wages of person who attaches legs to keyboards 2,010
Required:
1. Calculate the total product cost for Noteworthy.
2. Calculate the prime cost for Noteworthy.
3. Calculate the manufacturing overhead for Noteworthy.
4. Calculate the direct labor for Noteworthy.
5. Calculate the conversion cost for Noteworthy.
6. Calculate the total variable cost (with number of units produced as the activity) for Noteworthy.
7. Calculate the total fixed cost (with number of units produced as the activity) for Noteworthy.