Question

Sobota Corporation has provided the following partial listing of costs incurred during August: Marketing salaries Property taxes, factory Administrative travel $ 52,100 $ 12,400 100,800 0 Sales commissions $ 52,800 38,400 Indirect labor 0 Direct materials $ 173,900 $ 139,900 Advertising Depreciation of production equipment Direct labor $ 39,100 $87,400 Required: a. What is the total amount of product cost listed above? Answer is complete but not entirely correct. Total product $ 273,700 cost

Answer 1

Amounts 173,900 87,400 Total amount of Product cost : Particulars Direct materials Direct labor Manufacturing Overhead :- Property taxes, factory Indirect labor Depreciation of production equipment Total Product cost 12,400 38,400 39,100 351,200 Contribution Margin :- Particulars Amount $ 447,000 Sales 170,500 8,500 Less: Variable expenses Cost of goods sold Variable administrative expenses Variable selling expenses Total Variable expenses Contribution Margin 20,100 199,100 247,900