An airline manufacturer incurred the following costs last month (in thousands of
ID: 2603396 • Letter: A
Question
An airline manufacturer incurred the following costs last month (in thousands of dollars):
LOADING...
(Click the icon to view the costs.)Read the requirements
LOADING...
.
Requirement 1. Assuming the cost object is an airplane, classify each cost as one of the following: direct material (DM), direct labor (DL), indirect labor (IL), indirect materials (IM), other manufacturing overhead (other MOH), or period cost. What is the total for each type of cost? (Enter currency amounts in thousands and not in dollars. If a box is not used in the table leave the box empty; do not enter a zero.)
Other
DM
DL
IM
IL
MOH
Period
a.
Airplane seats. . . . . . . . . . . . . . . . . . . . . . . . .
b.
Production supervisors' salaries. . . . . . . . . . . . . .
c.
Depreciation on forklifts in factory. . . . . . . . . . . .
d.
Machine lubricants. . . . . . . . . . . . . . . . . . . . .
e.
Factory janitors' wages. . . . . . . . . . . . . . . . . . . . .
f.
Assembly workers' wages. . . . . . . . . . . . . . . . . . .
Enter any number in the edit fields and then click Check Answer.
DATA TABLE
a.
Airplane seats. . . . . . . . . . . . . . . . . . . . . . . . .
$250
b.
Production supervisors' salaries. . . . . . . . . . . . . .
$140
c.
Depreciation on forklifts in factory. . . . . . . . . . . .
$70
d.
Machine lubricants. . . . . . . . . . . . . . . . . . . . .
$45
e.
Factory janitors' wages. . . . . . . . . . . . . . . . . . . . .
$40
f.
Assembly workers' wages. . . . . . . . . . . . . . . . . . .
$630
g.
Property tax on corporate marketing office. . . . .
$20
h.
Plant utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$160
i.
Cost of warranty repairs. . . . . . . . . . . . . . . . . . . .
$255
j.
Machine operators' health insurance. . . . . . . . . .
$60
k.
Depreciation on administrative offices. . . . . . . . .
$110
l.
Cost of designing new plant layout. . . . . . . . . . . .
$175
m.
Jet engines. . . . . . . . . . . . . . . . . . . . . . . . . . .
$1,100
REQUIRMENTS
1.
Assuming the cost object is an airplane, classify each cost as one of thefollowing: direct material (DM), direct labor (DL), indirect labor (IL), indirect materials (IM), other manufacturing overhead (other MOH), or period cost. What is the total for each type of cost?
2.
Calculate total manufacturing overhead costs.
3.
Calculate total product costs.
4.
Calculate total prime costs.
5.
Calculate total conversion costs.
6.
Calculate total period costs.
Other
DM
DL
IM
IL
MOH
Period
Explanation / Answer
Total Manufacturing Overhead Costs =
Indirect Material+ Indirect Labour + Other Manufacturing Overhead=$45+$770+$650=$1465
Total Prime Cost= Direct Material + Direct Labour= $1350+$40=$1390
Total Product Costs=Prime Cost+ Manufacturing Overhead+ Period Cost
=$1390+$1465+$200
=$3055
Total Period Cost=$200
Total Conversion Cost= Total Manufacturing Overhead- Direct Material= 1465-1350=$115
Happy Learning ;)
DM DL IM IL Other MoH Period Cost a. Airplane seats 250 b. Product supervisor salaries 140 c. Depreciation on forklifts 70 d. Machine Lubricants 45 e. Factory Janitors wages 40 f. Assembly worker wages 630 g. Property tax on corporate marketing office 20 h. Plant utilities 160Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.