managerial accounting

The following cost data for the year just ended pertain to Heartstrings, Inc., a greeting card manufacturer: Service department costs*.. . ... $ 50,000 Direct labor: wages 242,500 Direct labor: fringe benefits . 47,500 Indirect labor: fringe benefits . . . . ..... 15,000 Fringe benefits for production supervisor 4,500 Total overtime premiums paid . . .. 27,500 Cost of idle time: production employees's . . . . 20,000 Administrative costs . . .. . . . . . . . . . . . . . ... 75,000 Rental of office space for sales personnel . . . . . . . 7,500 Sales commissions . . 2,500 Product promotion costs. 5,000 Direct material used 1,050,000 Advertising expense 49,500 Depreciation on factory building . . . . . . . 57,500 Cost of finished-goods inventory at year-end 57,500 Indirect labor: wages . . 70,000 Production supervisor's salary 22,500 *All services are provided to manufacturing departments. Cost of idle item is an overhead item; it is not included in direct-labor wages given above. The rental of sales space was made necessary when the sales offices were converted to storage space for raw material. Required: 1. Compute each of the following costs for the year just ended: (a) total prime costs, (b) total manu- facturing overhead costs, (c) total conversion costs, (d) total product costs, and (e) total period costs. 2. One of the costs listed above is an opportunity cost. Identify this cost, and explain why it is an opportunity cost