Question

The following information is available for Wonderway, Inc., for 2015: Factory rent Company advertising Wages paid tolaborers Depreciation for president's vehicle Indirect production labor Utilities for factory Production supervisors salary President's salary Direct materials used Sales commissions Factory insurance Depreciation on factory equipment 28,200 20,200 84,800 8,050 1,880 32,000 30,600 61,500 35,200 7,580 14,000 27,600 Required: 1. Calculate the direct labor cost for Wonderway. Direct Labor Cost 2. Calculate the manufacturing overhead cost for Wonderway. anufacturing Overhead

Answer 1

	Factory rent	28,200
	Company advertising	20,200
	Wages paid to laborers	84,800
	Depreciation for president's vehicle	8,050
	Indirect production labor	1,880
	Utilities for factory	32,000
	Production supervisor's salary	30,600
	President's salary	61,500
	Direct materials used	35,200
	Sales commissions	7,580
	Factory insurance	14,000
	Depreciation on factory equipment	27,600
answer 1	Direct labor cost
	Wages paid to laborers	84,800
answer 2
	Manufacturing overhead
	Factory rent	28,200
	Indirect production labor	1,880
	Utilities for factory	32,000
	Production supervisor's salary	30,600
	Factory insurance	14,000
	Depreciation on factory equipment	27,600
	Total Manufacturing overhead	134,280
answer 3	Prime cost
	Wages paid to laborers	84,800
	Direct materials used	35,200
	Prime cost	120,000
answer 4
	Conversion cost
	Wages paid to laborers	84,800
	Total Manufacturing overhead	134280
	Conversion cost	219,080
answer 5
	Total manufacturing cost
	Prime cost	120000
	Total Manufacturing overhead	134280
	Total manufacturing cost	254280
answer 6
	Period expense
	Company advertising	20200
	Depreciation for president's vehicle	8050
	President's salary	61500
	Sales commissions	7580
	Total period expense	97330