Question
1.A partial listing of costs incurred at Starr Corporation during June appears below: Direct Materials $110,000 Utilities Factory $10,000 Sales Commissions $30,000 Administrative salaries $115,000
1.A partial listing of costs incurred at Starr Corporation during June appears below: Direct Materials $110,000
Utilities Factory $10,000
Sales Commissions $30,000
Administrative salaries $115,000
Rent on Factory Space $45,000
Security Services for Factory $30,000
Advertising $124,000
Salaries of personnel who work in the finished goods warehouse $100,000
Depreciation of Production Equipment $45,000
Direct Labor $110,000
Depreciation of Administrative Equipment $40,000
Insurance on Factory Equipment $20,000
Required: a. What is the total amount of product cost listed above?
b. What is the total amount of period cost listed above?
c. What is the total amount of manufacturing overhead cost listed above?
d. What is the total amount of conversions costs listed above?
e. What is the total amount of prime costs listed above?
2. | 2. At an activity level of 6,000 units and a selling price of $125 per unit, Haas Corporation's total cost of goods sold (COGS) is $349,500. Included in the COGS is rent and depreciation of $48,000. All other COGS are variable costs. Other fixed costs not included in COGS are $125,000. Required: For the activity level of 6,500 units, compute: (a) the total variable cost; (b) the total fixed cost; (c) the total cost; (d) the variable cost per unit; (e) the fixed cost per unit; (f) the total cost per unit; (g) Please prepare a contribution format income statement from the above data based on the 6,500 units and calculate the contribution margin and variable expense ratios.
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