Question:
Forham Inc. manufactures stainless steel knives. Following are factory costs incurred during 2010:
|
Material costs
|
|
|
Stainless steel
|
$800,000
|
|
Equipment oil and grease
|
6,000
|
|
Plastic for handles
|
5,600
|
|
Wood blocks for knife storage
|
24,800
|
|
Labor costs
|
|
|
Equipment operators
|
$500,000
|
|
Equipment mechanics
|
82,000
|
|
Factory supervisors
|
272,000
|
a. What is the direct material cost for 2010?
b. What is the direct labor cost for 2010?
c. What is the total indirect material cost and the indirect labor cost for 2010?