1. Edward Company reported the following costs and expenses in July:

Factory utilities	$21,900		Direct labour	$98,700
Depreciation on factory equipment	20,850		Sales salaries	47,600
Depreciation on delivery trucks	6,200		Property taxes on factory building	2,550
Indirect factory labour	52,700		Repairs to office equipment	2,400
Indirect materials	86,300		Factory repairs	2,500
Direct materials used	147,000		Advertising	18,000
Factory manager's salary	22,200		Office supplies used	6,590

From the information above, answer the following.

Determine the total amount of manufacturing overhead.

Manufacturing overhead

$

Determine the total amount of product costs.

Product costs

$

2. The controller of Gutierrez Industries has collected the following monthly expense data for use in analyzing the cost behaviour of maintenance costs:

Month		Total Maintenance Costs		Total Machine Hours
January		$2,680			2,950
February		3,250			4,000
March		3,900			6,400
April		4,560			8,150
May		3,320			5,300
June		5,410			8,200

Determine the variable-cost component using the high-low method. (Round answer to 2 decimal places e.g. 12.25.)

Variable cost

$

per machine hour

Determine the fixed cost component using the high-low method.

Fixed cost

$

Calculate the cost to produce one driver. (Round answer to 2 decimal places, e.g. 15.25.)

Production cost per driver

$

3. Par Play Company, a manufacturer of driver golf clubs, started production in November 2020. For the preceding five years, Par Play had been a retailer of sports equipment. After a thorough survey of driver golf club markets, Par Play decided to turn its retail store into a driver golf club factory. Raw materials costs will total $24 per driver. Workers on the production lines are paid on average $17 per hour. A driver usually takes 2 hours to complete. In addition, the rent on the equipment used to produce drivers amounts to $1,830 per month. Indirect materials cost $4 per driver. A supervisor was hired to oversee production; her monthly salary is $4,300. Factory janitorial costs are $1,670 monthly. Advertising costs for the drivers will be $6,300 per month. The factory building depreciation expense is $9,660 per year. Property taxes on the factory building will be $7,440 per year.

Complete the following answer sheet assuming that Par Play manufactures, on average, 2,500 drivers per month, and enter each cost item on your answer sheet, placing the dollar amount per month under the appropriate heading. Total the dollar amounts in each of the columns.

		Product Costs
Cost Item		Direct Materials		Direct Labour		Manufacturing Overhead				Period Costs
Raw materials		$		$		$				$
Wages for workers
Rent on equipment
Indirect materials
Factory supervisor's salary
Factory janitorial costs
Advertising
Depreciation-factory building
Property taxes-factory building
		$		$		$				$

Calculate the cost to produce one driver. (Round answer to 2 decimal places, e.g. 15.25.)

Production cost per driver

$

4. Montana Company reports the following total costs at two levels of production. Classify each cost as variable, fixed, or mixed.

		5,000 Units		10,000 Units
Indirect labour		$ 3,000		$ 6,000		select a type of cost Fixed CostsMixed CostsVariable Costs
Property taxes		7,000		7,000		select a type of cost Fixed CostsMixed CostsVariable Costs
Direct labour		27,000		54,000		select a type of cost Fixed CostsMixed CostsVariable Costs
Direct materials		22,000		44,000		select a type of cost Fixed CostsMixed CostsVariable Costs
Depreciation		4,000		4,000		select a type of cost Fixed CostsMixed CostsVariable Costs
Utilities		3,000		5,000		select a type of cost Fixed CostsMixed CostsVariable Costs
Maintenance		9,000		11,000		select a type of cost