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Which of these costs should be included in the cost

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Question - Eritrea Ltd. is expanding its operations. Due to the expansion, they incurred the following costs during the fiscal period when they constructed a new factory:

Direct labour 70,000

Loan interest to finance expansion 3,000

Architectural drawings 15,000

Purchase of company car for the new plant manager 44,000

Direct material for factory 81,000

Allocation of overhead based on labour hours worked on factory 58,000

Imputed interest on lost opportunity costs 9,000

Instructions - Which of these costs should be included in the cost of the new factory? Please total the included items.

Reference no: EM132567272

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