Direct Materials $195,000 Utilities, Factory $9,000 Sales Commission $75,000 Administrative Salaries $113,000 Indirect Labor $30,000 Advertising $119,000 Depreciation of Production Equipment $28,000 Direct Labor $105,000 Depreciation of Administrative Equipment $44,000 What is the total amount of product cost listed above? Show your work. What is the total amount of period cost listed above? Show your work.
Direct Materials $195,000 Utilities, Factory $9,000 Sales Commission $75,000 Administrative Salaries $113,000 Indirect Labor $30,000 Advertising $119,000 Depreciation of Production Equipment $28,000 Direct Labor $105,000 Depreciation of Administrative Equipment $44,000 What is the total amount of product cost listed above? Show your work. What is the total amount of period cost listed above? Show your work.
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 8MC: A company calculated the predetermined overhead based on an estimated overhead of $70.000, and the...
Related questions
Question
Direct Materials |
$195,000 |
Utilities, Factory |
$9,000 |
Sales Commission |
$75,000 |
Administrative Salaries |
$113,000 |
Indirect Labor |
$30,000 |
Advertising |
$119,000 |
|
$28,000 |
Direct Labor |
$105,000 |
Depreciation of Administrative Equipment |
$44,000 |
What is the total amount of product cost listed above? Show your work.
What is the total amount of period cost listed above? Show your work.
Expert Solution
Step 1
The costs related to production are product costs and the costs incurred on activities other than production are period costs.
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