Question
Custom Clothing Ltd is a manufacturer of pieces of clothing ordered by customers in their own design. The minimum number of pieces to accept an
Custom Clothing Ltd is a manufacturer of pieces of clothing ordered by customers in their own design. The minimum number of pieces to accept an order is 80 pieces. The following information for the year 2019 is provided by this company:
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Total production and sales (number of pieces) | 80,000 pieces |
Total direct labour hours | 100,000 |
Total machine hours | 60,000 |
Costs: |
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Marketing | $2,400,000 |
Machine and maintenance repairs | $860,000 |
Depreciation of sewing machines | $32,000 |
Depreciation of factory building | $18,000 |
Depreciation of administration equipment | $8,000 |
Total cost of direct materials | $720,000 |
Cleaning materials factory | $6,000 |
Interest | $2,100 |
Total cost of direct labour | $1,800,000 |
Indirect labour | $1,400,000 |
Factory electricity | $650,000 |
Administration | $1,800,000 |
Other indirect costs | $520,000 |
Identification of costs
From the information provided, calculate the following costs:
Total direct costs |
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Total overhead costs |
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Total manufacturing costs |
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