The following data pertain to the Anderson Table Manufacturing Company for January 2003. The company made 1,000 tables during January, and there are no beginning or ending inventories.

Required:

a. What is the cost of direct material used in production during January 2003?

b. What is the cost of direct labor for January 2003?

c. What is the cost of manufacturing overhead for January 2003?

d. What is the total cost of tables manufactured in January 2003?

e. What is the cost of each table manufactured in January 2003?

f. Do you think the cost per table is valuable information for Carole Anderson, the company’s owner? How might she use this information?

Transcribed Image Text:

Wood used in production $25,000 Cleaning supplies used in the factory 300 Machine lubricants used in the factory 100 Factory rent 2,000 Rent on the sales office 3,000 Sales salaries 20,000 Production-line labor cost 50,000 Plant security guard cost 1,200 Plant supervision Sales office supervision Depreciation on production equipment Depreciation on sales office equipment 2,500 3,000 4,000 1,000