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Custom Creations Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Depreciation on sales office Depreciation
Custom Creations Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Depreciation on sales office Depreciation on factory equipment Factory supervisor salary Sales commissions Lubricants used in factory equipment Insurance costs for factory Wages paid to maintenance workers Fabric used to upholster furniture Freight-in (on raw materials) Costs of delivery to customers 9,900 16,800 50,000 23,300 3,100 21,200 115,300 10,800 3,300 9,000 O A. $93,300 OB. $376,900. C. $211,600. D. $208,300 Sales commissions Lubricants used in factory equipment Insurance costs for factory Wages paid to maintenance workers Fabric used to upholster furniture Freight - in (on raw materials) Costs of delivery to customers Wages paid to assembly - line workers Lumber used to build product Utilities in factory Utilities in sales office 23,300 3,100 21,200 115,300 10,800 3,300 9,000 115,000 82,500 54,400 26,000 Prime costs for Custom Creations Furniture Company totaled O A. $93,300. OB. $376,900. O C. $211,600. OD. $208,300
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