Reference no: EM132598124
Casual furniture company manufacturers outdoor furniture, and incurred the following costs during the month of January :
Timber 25000
Paint 5000
Glue 500
Wages assembly personnel 20 000
Wages factory supervisor 3500
Factory cleaners wages 2000
Sales commission 10000
Administrative staff salaries 4000
Depreciation factory equipment 3000
Depreciation sales office equipm 1000
Utilities, insurance factory 6000
Utilities, insurance, sales office 2000
Advertising 8000
Total costs 90000
Question 1: What is product costs Periodic cost Prime cost Conversion cost Manufacturing overhead costs
Question 2: What costs will change with a decrease in activity within relevant range? the cost formula Y=12000+R6X, total cost at an activity level of 8000 units would be?