Reference no: EM133016152
Question - Clarkes manufactures school shoes incurs the following costs as part of its operations (listed below).
Cost item $
Factory Supervisor 60,000
Factory utilities (gas and electricity) 45,000
Purchase of leather and other materials $250,000
Rent for manufacturing premises $120,000
Rent for admin building $100,000
Depreciation of factory machines $75,000
Factory machine operators $155,000
Television Advertising "Back to school campaigns" $60,000
Commission to sales staff $90,000
Workers on the factory assembly line $140,000
Required -
(a) Calculate the prime costs.
(b) Identify and total the manufacturing overhead costs.
(c) What items are classified a period costs and explain how they are treated with respect to manufacturing costs.