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need all calculations to be shown 1. The following costs were incurred for the year just ended by Acme Company $2,100,000 Fringe benefits for production
need all calculations to be shown
1. The following costs were incurred for the year just ended by Acme Company $2,100,000 Fringe benefits for production supervisor Advertising expense 99,000 9,000 Depreciation on factory bldg. 115,000 Total overtime premiums paid 55,000 Direct labor: wages 85,000 Cost of idle time: production employees Cost of finished goods inventory at year's 40,000 end 115,000 Administrative costs 150,000 Indirect labor wages 140,000 Rental of office space for sales personnel) Production supervisor's salary 45,000 15,000 Service department costs(1) 100,000 Sales commissions 5,000 Direct labor fringe benefits 95,000 Product promotion costs 10,000 Indirect labor fringe benefits 30,000 (1) All services are provided to manufacturing departments. (2) Cost of idle time is an overhead item; it is not included in the direct-labor wages posted. (3) The rental of sales space was made necessary when the sales offices were converted to storage space for raw materials. a) Compute each of the following costs for the year just ended: (1) Total prime costs. (2) Total manufacturing overhead costs. (3) Total conversion costs. (4) Total product costs. (5) Total period costs. b) One of the costs listed is an opportunity cost. Identify this cost and explain why it is an opportunity costStep by Step Solution
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