Question
Apparently all of these are wrong? I can't figure out what I am doing wrong! The following is a list of costs and amounts for
Apparently all of these are wrong? I can't figure out what I am doing wrong!
The following is a list of costs and amounts for Stelia Industries' latest month. Stelia makes one product, a metallic, reusable water bottle.
Here is what I thought?
Direct Costs: Sheet Metal $6523, Rubber Caps $3284, Insulation $1141, Stainless Steel $585, Sandpaper $256 (do I add assembler wages here too?)
Indirect costs: Shipping $1154, wages to maintenance $2865, advertising $6985, assembler wages $12853, Depreciation on office $152, depreciation on milling machine $3974, Property tax $1554, Supervisor salary $3258
Direct Materials: Sheet Metal $6523, Rubber Caps $3284, Insulation $1141, finishing solution $585, Sandpaper $256
Direct Labor: Assembler Wages $12853
Overhead: Wages for maintenance crew $2865, depreciation office $152, depreciation machine $3974, Property tax $1554, Supervisor salary $3258
Prime cost: Direct costs + direct labor
Conversion cost: Direct labor + overhead
Total Production $Prime cost + conversion cost
Period Cost: Shipping $1154, Advertising $6985
Variable: Sheet metal $6523, Rubber caps $3284, shipping $1154, Insulation $1141, finishing solution $585, sandpaper $256, assembler wages $12853
Fixed: President salary $4752, Maintenance wages $2865, property tax $1554. Supervisor salary $3258
I am so bad at this! Trying to read examples in a book and apply it to cells is difficult for me. If I had examples with different numbers to practice with it could really help.
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