1 HW C ezto.mheducation.com/hm.tpx 0.89 points The following information is avai
ID: 2401011 • Letter: 1
Question
1 HW C ezto.mheducation.com/hm.tpx 0.89 points The following information is available for Wonderway, Inc., for 2015 Factory rent Company advertising Wages paid to laborers Depreciation for president's vehicle Indirect production labor Utilities for factory Production supervisor's salary President's salary Direct materials used Sales commissions Factory insurance Depreciation on factory equipment 28,800 19,200 83,700 8,040 1.860 31,900 31,200 61,500 36,300 7,680 13.300 27,600 Required 1. Calculate the direct labor cost for Wonderway Direct Labor Cost 2. Calculate the manufacturing overnead cost for Wonderway Manufacturing OverheadExplanation / Answer
1. Direct labor cost is the amount paid to the workers who are directly involved in product manufaturing.
Direct Labor Cost = Wages Paid to laborers = $83,700
2. Manufacturing Overhead = factory rent + Indirect production labor + Utilities for factory + production supervisor salary + factory insurance + depreciation on factory equipment
= 28800 + 1860 + 31900 + 31200 + 13300 + 27600 = $134,660
3. Prime Cost = Direct Material + Direct labor
= 36300 + 83700 = $120,000
4. Conversion Cost = Direct labor + Manufacturing Overhead
= 83700+ 134660 = 218,360
5. Total manufacturing Cost = Direct Material + Direct labor + manufacturing overhead
= 36300 + 83700 + 134660 = 254660
6. Period Cost = Company advertising + Depreciation on president vehicle + president salary + sales commision
= 19200 + 8040 + 61500 + 7680 = $96,420
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