Question
In: Accounting
Randy Inc. produces and sells tablets. The company incurred the following costs for the May: Advertising...
Randy Inc. produces and sells tablets. The company incurred the following costs for the May:
| Advertising cost for monthly television ads | $ | 5,800 |
| Attachable keyboard | 19,800 | |
| Insurance for delivery truck | 580 | |
| Factory supervisor's salary | 3,550 | |
| Marketing manager's salary | 3,250 | |
| Assembly worker wages | 24,000 | |
| Miscellaneous soldering material used to seal case | 1,050 | |
| Hourly wages for factory security guard | 2,200 | |
| CEO's salary | 7,400 | |
| Speakers | 5,200 | |
Required:
Determine each of the following:
Direct material
Direct labor
Manufacturing overhead
Total manufacturing cost
Total period cost
Total variable cost
Total fixed cost
Solutions
Expert Solution
| Computation of Direct material | |
| Speaker | $5,200 |
| Attachable Keyboard | $19,800 |
| Direct material | $25,000 |
| Computation of Direct Labour | |
| Assembly Worker Wages | $24,000 |
| Total direct labor cost | $24,000 |
| Computation of Manufacturing overhead | |
| Factory supervisor's salary | $3,550 |
| Miscellaneous soldering material used to seal case | $1,050 |
| Hourly wages for factory security guard | $2,200 |
| Total manufacturing overhead | $6,800 |
| Computation of total Manufacturing Cost | |
| Direct Material | $25,000 |
| Direct Labour | $24,000 |
| Manufacturing Overhead | $6,800 |
| Total manufacturing overhead | $55,800 |
| Computation of Total Period Cost | |
| Advertising cost for monthly television ads | 5800 |
| Insurance for delivery truck | 580 |
| Marketing manager's salary | 3250 |
| CEO's salary | 7400 |
| total period cost | $17,030 |
| Computation of Total Variable Cost | |
| Attachable keyboard | $19,800 |
| Speakers | $5,200 |
| Assembly worker wages | $24,000 |
| Miscellaneous soldering material used to seal case | $1,050 |
| total variable cost | $50,050 |
| Computation of Total Fixed Cost | |
| Factory supervisor's salary | $3,550 |
| Hourly wages for factory security guard | $2,200 |
| Advertising cost for monthly television ads | $5,800 |
| Insurance for delivery truck | $580 |
| Marketing manager's salary | $3,250 |
| CEO's salary | $7,400 |
| total fixed cost | $22,780 |
ekkarill92 answered 3 years agoRelated Solutions
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Direct materials
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Variable selling and administrative
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Direct
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1....
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