Question

980 Depreciation on factory equipment Depreciation on CEO's company car Speakers used in the keyboard Production supervisor's salary Glue and screws used in the keyboards Wages of persons who install the speakers Cost to run an ad on local radio stations Utilities for the factory Personnel manager's salary Wages of person who attaches legs to keyboards $ 230 1, 220 2,390 260 2,850 660 1,320 2,560 2,030 Required: 1. Calculate the total product cost for Noteworthy. 2. Calculate the prime cost for Noteworthy. 3. Calculate the manufacturing overhead for Noteworthy. 4. Calculate the direct labor for Noteworthy. 5. Calculate the conversion cost for Noteworthy. 6. Calculate the total variable cost (with number of units produced as the activity) for Noteworthy. 7. Calculate the total fixed cost (with number of units produced as the activity) for Noteworthy. 1. Total Product Cost 2. Prime Cost 3. Manufacturing Overhead 4. Direct Labor Cost 5. Conversion Cost 6. Total Variable Cost 7. Total Fixed Cost

Answer 1

$ А B 1 1) 2 Particulars Amount 3 Depreciation on factory equipment $ 980 4 Speakers used in keyboard $ 1,220 5 Production supervisor's salary $ 2,390 6 Glue and screws used in the keyboards $ 260 7 Wages of persons who install the speakers $ 2,850 8 Utilities for the factory $ 1,320 9 Wages of person who attaches legs to keyboards $ 2,030 10 Total product Cost $ 11,050 11 12 2) 13 Particulars Amount 14 Speakers used in keyboard $ 1,220 15 Wages of persons who install the speakers $ 2,850 16 Wages of person who attaches legs to keyboards $ 2,030 17 Prime Cost $ 6,100 18 193) 20 Particulars Amount 21 Depreciation on factory quipment $ 980 22 Production supervisor's salary $ 2,390 23 Glue and screws used in the keyboards $ 260 24 Utilities for the factory $ 1,320 25 Manufacturing overhead $ 4,950 26 274)

28 Particulars Amount 29 Wages of persons who install the speakers $ 2,850 30 Wages of person who attaches legs to keyboards $ 2,030 31 Direct Labor cost $ 4,880 32 33 5) 34 Particulars Amount 35 Direct Labor cost $ 4,880 36 Manufacturing overhead $ 4,950 37 Conversion cost $ 9,830 38 39 6) 40 Particulars Amount 41 Speakers used in keyboard $ 1,220 42 Glue and screws used in the keyboards $ 260 43 Wages of persons who install the speakers $ 2,850 44 Wages of person who attaches legs to keyboards $ 2,030 45 Utilities for the factory $ 1,320 46 Total Variable cost $ 7,680 47 487) 49 Particulars Amount 50 Depreciation on factory equipment $ 980 51 Depreciation on CEO's company car $ 230 52 Production supervisor's salary $ 2,390 53 Cost to run an ad on local radio stations $ 660 54 Personnel manager's salary $ 2,560 55 Total Fixed cost $ 6,820

A B 1 1) 2 Particulars Amount 3 Depreciation on factory equipment 980 4 Speakers used in keyboard 1220 5 Production supervisor's salary 2390 6 Glue and screws used in the keyboards 260 7 Wages of persons who install the speakers 2850 8 Utilities for the factory 1320 9 Wages of person who attaches legs to keyboards 2030 10 Total product Cost =SUM(B3:39) 11 12 2) Particulars Amount 14 Speakers used in keyboard 1220 15 Wages of persons who install the speakers 2850 16 Wages of person who attaches legs to keyboards 2030 17 Prime Cost =+B14+B15+B16 13 18 Amount 980 19 3) 20 Particulars 21 Depreciation on factory quipment 22 Production supervisor's salary 23 Glue and screws used in the keyboards 24 Utilities for the factory 25 Manufacturing overhead 2390 260 1320 =SUM(B21:B24) 26 27 4)

28 Particulars Amount 29 Wages of persons who install the speakers 2850 30 Wages of person who attaches legs to keyboards 2030 31 Direct Labor cost =+B29+B30 32 33 5) 34 Particulars Amount 35 Direct Labor cost =+B31 36 Manufacturing overhead =+B25 37 Conversion cost =+B35+B36 38 39 6) 40 Particulars Amount 41 Speakers used in keyboard 1220 42 Glue and screws used in the keyboards 260 43 Wages of persons who install the speakers 2850 44 Wages of person who attaches legs to keyboards 2030 45 Utilities for the factory 1320 46 Total Variable cost =SUM(B41:145) 47 48 7) 49 Amount 980 Particulars 50 Depreciation on factory equipment 51 Depreciation on CEO's company car 52 Production supervisor's salary 53 Cost to run an ad on local radio stations 54 Personnel manager's salary 55 Total Fixed cost 230 2390 660 2560 =SUM(B50:354)