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The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer: Direct material $2,100,000 Advertising expense 97,000 Depreciation on
The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer:
Direct material | $2,100,000 | ||
Advertising expense | 97,000 | ||
Depreciation on factory building | 117,000 | ||
Direct labor: wages | 545,000 | ||
Cost of finished goods inventory at year-end | 115,000 | ||
Indirect labor: wages | 140,000 | ||
Production supervisors salary | 47,000 | ||
Service department costs* | 100,000 | ||
Direct labor: fringe benefits | 94,000 | ||
Indirect labor: fringe benefits | 32,000 | ||
Fringe benefits for production supervisor | 10,000 | ||
Total overtime premiums paid | 55,000 | ||
Cost of idle time: production employees | 40,000 | ||
Administrative costs | 150,000 | ||
Rental of office space for sales personnel | 15,000 | ||
Sales commissions | 4,000 | ||
Product promotion costs | 10,000 | ||
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*All services are provided to manufacturing departments.
Cost of idle time is an overhead item; it is not included in the 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:
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