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Forham Inc. manufactures stainless steel knives. Following are factory costs incurred during 2010:
Material costsStainless steel ...........................................$800,000Equipment oil and grease .............................. 6,000Plastic for handles ....................................... 5,600Wood blocks for knife storage .......................... 24,800Labor costsEquipment operators ...................................$500,000Equipment mechanics ................................. 82,000Factory 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?
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