Question

Randy Inc. produces and sells tablets. The company incurred the following costs for the May: Advertising cost for monthly television ads Attachable keyboard Insurance for delivery truck Factory supervisor's salary Marketing manager's salary Assembly worker wages Miscellaneous soldering material used to seal case Hourly wages for factory security guard CEO's salary Speakers $ 4,200 18,200 420 3,150 2,850 16,000 650 1,800 6,600 4,800 Required: Determine each of the following: 1. Direct material 2. Direct labor 3. Manufacturing overhead 4. Total manufacturing cost 5. Total period cost 6. Total variable cost 17. Total fixed cost

Answer 1

Solution :
1	Advertising cost for monthly television ads	$4,200
2	Attachable Keyboard	$18,200
3	Insurance for delivery truck	$420
4	Factory supervisor's salary	$3,150
5	marketing manager's salary	$2,850
6	Assembly worker wages	$16,000
7	Miscellaneous soldering material used to seal case	$650
8	Hourly wages for factory security guard	$1,800
9	CEO's salary	$6,600
10	speakers	$4,800
1	Direct Material
	Attachable Keyboard	$18,200
	speakers	$4,800
	Total	$23,000
2	Direct Labor
	Assembly worker wages	$16,000
	Total	$16,000
3	Manufacturing overhead
	Factory supervisor's salary	$3,150
	Miscellaneous soldering material used to seal case	$650
	Hourly wages for factory security guard	$1,800
	Total	$5,600
4	Total manufacturing cost
	Direct Material	$23,000
	Direct Labor	$16,000
	Manufacturing overhead	$5,600
	Total	$44,600
5	Total period cost
	Advertising cost for monthly television ads	$4,200
	Insurance for delivery truck	$420
	marketing manager's salary	$2,850
	CEO's salary	$6,600
	Total	$14,070
6	Total variable cost
	Attachable Keyboard	$18,200
	Assembly worker wages	$16,000
	Miscellaneous soldering material used to seal case	$650
	Hourly wages for factory security guard	$1,800
	speakers	$4,800
	Total	$41,450
7	Total fixed cost
	Advertising cost for monthly television ads	$4,200
	Insurance for delivery truck	$420
	Factory supervisor's salary	$3,150
	marketing manager's salary	$2,850
	CEO's salary	$6,600
	Factory supervisor's salary	$3,150
	Total	$20,370