Q2. Fletcher Adams has commenced business manufacturing fiberglass sailboards.

His budgeted costs for the current month are as follows:

Fiberglass and resin	$12,000
Sailcloth	$3,500
Rigging and Fittings	$3,000
Production Wages	$10,000
Factory Rent	$2,500
Variable Factory Overhead	$500
Depreciation - Factory Equipment	$700
General Office Rent	$3,750
General Office Salaries	$2,050

Fletcher Adams accounts for all manufacturing costs as product costs.

Required:

Calculate the following budgeted totals for the month:

Your answers:

1. Prime cost.

(b) Period cost.

(c) Fixed Manufacturing cost.

(d) Variable Manufacturing cost.