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Cullumber Express Co. produces wooden crates used for shipping products by ocean liner. In 2022, Cullumber Express incurred the following costs. Wood used in Cullumber
Cullumber Express Co. produces wooden crates used for shipping products by ocean liner. In 2022, Cullumber Express incurred the following costs.
Wood used in Cullumber production | $56,000 | |
Nails (considered insignificant and a variable expense) | $370 | |
Direct labor | $40,600 | |
Utilities for the plant: | ||
$1,200 each month, | ||
plus $0.40 for each kilowatt-hour used each month | ||
Rent expense for the plant for the year | $24,100 |
Assume Cullumber Express used an average 600 kilowatt-hours each month over the past year. (a) What is Cullumber Express's total manufacturing cost if it uses a variable costing approach?
Total manufacturing costs | $enter the total manufacturing costs in dollars |
(b) What is Cullumber Express's total manufacturing cost if it uses an absorption costing approach?
Total manufacturing costs | $enter the total manufacturing costs in dollars |
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