Reference no: EM132532532
Question - Cost Item Amount Direct labor $100,000 Direct material $75,000 Advertising $50,000 Factory supervision $40,000 Sales commissions $60,000 Depreciation, administrative office equipment $5,000 Indirect materials, factory $6,000 Depreciation, factory building $10,000 Administrative office supplies $3,000.
Required -
a) What is the total prime cost?
b) What is the total conversion cost?
c) What is the total period cost?
d) What is the total direct product cost?
e) What is the total indirect product cost?
f) From the cost items listed on the table above, list one indirect product cost which varies with the level of output.
g) Under variable costing, what is the average unit product cost for the specific period? Considering that during this specific period 1,000 units of only one type of product was manufactured.
h) Under absorption costing, what is the average unit product cost for the specific period? Considering that during this specific period 1,000 units of only one type of product was manufactured.
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