Question

I need help calculating variable cost, and fixed cost.

Factory rent	$	3,090
Company advertising		1,090
Wages paid to assembly workers		30,700
Depreciation for salespersons’ vehicles		2,010
Screws		585
Utilities for factory		855
Assembly supervisor’s salary		3,690
Sandpaper		195
President’s salary		5,090
Plastic tubing		4,010
Paint		200
Sales commissions		1,230
Factory insurance		1,030
Depreciation on cutting machines		2,110
Wages paid to painters		8,050

a. Direct Materials $4,010 b. Direct Labor $38,750 c. Manufacturing Overhead $11,755 d. Prime Cost $42,760 e. Conversion Cost $50,505 f. Total Product Cost $54,515 g. Total Period Cost $9,420 h. Total Variable Cost i. Total Fixed Cost

Answer 1

h) Variable Cost = Wages paid to assembly workers`+ Screws + Utilities for factory + Sandpaper + Plastic tubing + Paint + Sales commissions + Wages paid to painters

= 30,700 + 585 + 855 + 195 + 4,010 + 200 + 1,230 + 8,050

= $45,825

i) Fixed Cost = Factory rent + Company advertising + Depreciation for salespersons’ vehicles + Assembly supervisor’s salary + President’s salary + Factory insurance + Depreciation on cutting machines

= 3,090 + 1,090 + 2,010 + 3,690 + 5,090 + 1,030 + 2,110

= $18,110

a. Direct Materials $4,010 b. Direct Labor $38,750 c. Manufacturing Overhead $11,755 d. Prime Cost $42,760 e. Conversion Cost $50,505 f. Total Product Cost $54,515 g. Total Period Cost $9,420 h. Total Variable Cost $45,825 i. Total Fixed Cost $18,110

Kindly comment if you need further assistance. Thanks‼!