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You are in a paper boat manufacturing business. You make paper boats and sell it in the neighborhood. Each boat requires one paper, which costs
You are in a paper boat manufacturing business. You make paper boats and sell it in the neighborhood. Each boat requires one paper, which costs 10 dollars per paper, and 1 hour to make, with 15 dollars per hour of labor rate. Other costs in the manufacturing unit includes utility costs of 500 dollars per month, cleaner's salary of 300 dollars per month and cleaning supplies of 100 dollars month. You have a sales person to sell your product in the neighborhood and you pay him 2000 dollars per month. Q2. Salesperson's salary is a Q1. What is your total manufacturing overhead cost for these 10 boats in the month? a)2900 dollars a) Direct Labor cost b) Manufacturing overhead cost b) 900 dollars c)9000 dollars c)Non-manufacturing cost d)Manufacturing cost d)5000 dollars e) Cannot be determined without further data
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