Problem related to the furniture

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Question: ABC Company manufactures furniture, including tables. Selected costs are given below:

The tables are made of wood that costs Br.100 per table.

The tables are made by workers, at a wage cost of Br. 40 per table.

Workers making the tables are supervised by a factory supervisor who is paid Br.38,000 per year.

Electrical costs are Br. 2 per machine-hour. Four machine-hours are required to produce a table.

Machine cleaning materials cost total Br. 15,000 per year.

Compensation to factory cleaners total Br. 30,000 per year.

Depreciation on the machines used to make the tables totals Br. 10,000 per year.

The salary of the manager of ABC Company is Br. 100,000 per year.

ABC Company spends Br. 5,000 per year to advertise its products.

Salespersons are paid a commission of Br. 30 for each table sold.

Salary of company guards total Br. 14,000 per year.

Required: Classify the costs as DM, DL, MOH, direct, indirect, fixed, variable, prime, conversion, selling, administrative, product and period.

Reference no: EM131752169

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