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Given: The Blue Bird Companys for 2018 paid $35,000,000 in Direct Labor Wages. The company building is 150 foot x 150 foot. Building use: 15%

Given: The Blue Bird Companys for 2018 paid $35,000,000 in Direct Labor Wages. The company building is 150 foot x 150 foot. Building use: 15% for office area and 65% for manufacturing and 20% for warehouse. They employ 7 indirect workers. Various costs for year 2018 follows:

Description of Company Costs

Cost

Fringe Benefits for Direct and Indirect Labor

Fringe benefit % = 30% of Labor Costs

Salary people payroll NOT including fringes

$2,000,000 / year

Shop Supplies

$200,000 / year

Maintenance for shop area

$250,000 / year

Fringe Benefit rate for all salary personnel

35%

Building Mortgage

$0.60 /sq.ft./ month

Utilities for office space

$0.30/ sq. ft./ month

Utilities for warehouse and factory

$0.40/sq.ft./ month

Long term loan for equipment $400,000

$40,000 per year

Total purchase cost of parts going into XYZ1 & ABCD

$400,000 / year

Indirect laborer wages without Fringe Benefits/worker

$40,000 / year

  1. _____________(A) What was the total overhead costs for the company for 2018? (3 points)

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