Please show me your work so I can follow along to get a better understanding.
Compute each of the following costs for the year just ended:
Total Prime
total manufacturing overhead costs
total conversion costs
total product costs
total period costs
Which one is an opportunity cost and why?
Please help me understand why you put the numbers and labels where you put them. I am still trying to figure that out. I am paying extra to help me.
The following cost data for the year just ended pertain to Heartstrings, Inc., a greeting card manufacturer:
| Service department costs* |
$ |
100,000 |
| Direct labor: wages |
|
480,000 |
| Direct labor: fringe benefits |
|
88,000 |
| Indirect labor: fringe benefits |
|
31,000 |
| Fringe benefits for production supervisor |
|
11,000 |
| Total overtime premiums paid |
|
55,000 |
| Cost of idle time: production employees§ |
|
40,000 |
| Administrative costs |
|
150,000 |
| Rental of office space for sales personnel† |
|
15,000 |
| Sales commissions |
|
5,000 |
| Product promotion costs |
|
10,000 |
| Direct material used |
|
2,200,000 |
| Advertising expense |
|
97,000 |
| Depreciation on factory building |
|
116,000 |
| Cost of finished-goods inventory at year-end |
|
115,000 |
| Indirect labor: wages |
|
142,000 |
| Production supervisor's salary |
$ |
46,000 |
All services are provided to manufacturing departments.
Cost of idle item is an overhead item; it is not included in direct-labor wages given above.
The rental of sales space was made necessary when the sales offices were converted to storage space for raw material.