Assignment:
Managers at Appalacian Woolen Mills are examining the following list of costs in order to determine the total amount of Manufacturing Overhead.
Labor- Production Workers $150,000
Labor- Production Supervisor $70,000
Labor- Sales Staff $45,000
Labor- Admin Staff $85,000
Depreciation- Loom Equipment- $30,000
Depreciation- Office Equipment- $15,000
Insurance - Mill- $12,000
Insurance - Office- $8,000
Property Taxes- Mill- $10,000
Property Taxes- Office- $6,000
Advertising- $36,000
General Administration- $28,000
Sales Commissions- $32,000
Supplies- Mill- $34,000
Supplies- Office- $22,000
Direct Materials- $80,000
Q1. Determine the total direct manufacturing cost.
Q2. Briefly explain the difference between manufacturing overhead costs and selling and administrative costs.
Q3. Calculate both the total manufacturing overhead cost and the total selling and administrative cost.