Question $1$

$($a$)$ A manufacturer manufactures wooden furniture. Indicate for each of the following

items whether it is a cost object, a direct cost, or an indirect cost:

$($i$)$ A particular type of desk manufactured.

$(1$ mark$)$

$($ii$)$ The wood used to make a desk.

$(1$ mark$)$

$($iii$)$ The wages of the employees assembling desks.

$(1$ mark$)$

$($iv$)$ A particular type of cupboard manufactured.

$(1$ mark$)$

$($v$)$ The nails used in assembling a cupboard.

$(1$ mark$)$

$($vi$)$ The rent for the factory building.

$(1$ mark$)$

$($vii$)$ The wages of the cleaning staff in the factory.

$($b$)$ Temweni Manufacturers incurred the following costs:

Required:

Calculate the following:

$($i$)$ Prime costs

$($ii$)$ Conversion costs

$($iii$)$ Total manufacturing costs

$($c$)$ The total fixed cost of Temweni Manufacturers amounts to K$15000$ per month.