Question
Melindas Custom Homes, a construction company that builds custom-designed houses, incurred costs for the following items. Wages paid to construction crew $ 108,000 Wood $
Melindas Custom Homes, a construction company that builds custom-designed houses, incurred costs for the following items. Wages paid to construction crew $ 108,000 Wood $ 170,000 Production supervisors salary $ 63,000 Billboard advertising the company $ 8,200 Rent on office space $ 11,100 Depreciation on tools used at construction sites $ 31,400 Sheet rock $ 84,000 Machine purchased to cut a special kind of tile requested by one customercannot be re-used $ 9,300 Gas for the company truck, used to haul supplies to construction sites $ 3,400 Paint $ 9,100 Fees paid to electrical contractor, who charges a set amount per house $ 11,300 Depreciation on the company truck, used to haul supplies to construction sites (straight-line) $ 13,000 Insurance premiums $ 12,300 Presidents salary $ 117,000 Bricks $ 89,000 Calculate each of the following, where the cost object is the houses built by the company: a. Total variable costs. b. Total fixed costs. c. Total direct costs. d. Total indirect costs.
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