Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Toledo Toy Company incurred the following costs during 20x4. The company sold all of its products manufactured during the year. Direct Materials 5,000,000 Direct Labor
Toledo Toy Company incurred the following costs during 20x4. The company sold all of its products manufactured during the year.
Direct Materials | 5,000,000 |
Direct Labor | 3,500,000 |
Manufacturing Overhead: | |
Utilities (primarily electricity) | 250,000 |
Depreciation Plant and Equipment | 350,000 |
Insurance | 260,000 |
Supervisory Salary | 470,000 |
Property Taxes | 330,000 |
Selling Cost: | |
Advertising | 315,000 |
Sales Commission | 145,000 |
Administrative Costs: | |
Salaries of Top management | 580,000 |
Office Supplies (fixed) | 70,000 |
Depreciation on Building and Equipment | 140,000 |
During 20x4, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x5 are slightly better. Jared Lowes, the marketing manager, forecasts a 30 percent growth in sales over the 20x4 level
How much is the TOTAL FIXED COST of Toledo Toy Company in 20x4?
Group of answer choices
2,515,000
2,445,000
2,375,000
2,500,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started