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In the following chart you will find the expenses when Cotton Clean produces and sells 10,000 shirts: Factory rent $42,000 Company advertising 18,000 Wages

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In the following chart you will find the expenses when Cotton Clean produces and sells 10,000 shirts: Factory rent $42,000 Company advertising 18,000 Wages paid to seamstresses 75,000 Straight line depreciation on salespersons' vehicles 25,000 Thread 1,000 Utilities for factory 22,000 Cutting room supervisor's salary 30,000 President's salary 75,000 Cotton material 42,000 Buttons 750 Factory insurance 15,000 Straight line depreciation on sewing machines 6,000 Wages paid to cutters 50,000 Sales commissions 10% of sales Selling price per unit 50 a. Compute: 1. Direct materials. 2. Direct labor. 3. Fixed Manufacturing overhead. 4. Variable manufacturing overhead. 5. Total manufacturing costs. 6. Prime cost. 7. Conversion cost. 8. Fixed period cost.

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