Prime Cost Manufacting Overhead Direct Labor Conversion Cost

Prime Cost_____________________

Manufacting Overhead________________

Direct Labor____________________

Conversion Cost _____________________

Total Variable Cost__________________

Total Fixed Cost____________________

Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy\'s costs for the most recent month Depreciation on factory equipment Depreciation on CEO\'s company car Speakers used in the keyboard Production supervisor\'s salary Glue and s Wa $ 900 130 1,200 2,210 270 2,990 680 1,210 2,510 2,130 crews used in the keyboards ges of persons who install the speakers Cost to run an ad on local radio stations Utilities for the factory Personnel manager\'s salary Wages of person who attaches legs to keyboards

Solution

Answer to Part 1.

Total Product Cost = Depreciation on Factory Equipment + Speaker used in the Keyboard + Production Supervisor’s Salary + Glue and Screws used in Speakers + Wages of person who installs the Speaker + Utilities for the Factory + Wages of person who attaches legs to Keyboard

Total Product Cost = $900 + $1,200 + $2,210 + $270 + $2,990 + $1,210 + $2,130
Total Product Cost = $10,910

Answer to Part 2.

Total Prime Cost = Speaker used in the Keyboard + Wages of person who installs the Speaker + Wages of person who attaches legs to Keyboard

Total Prime Cost = $1,200 + $2,990 + $2,130
Total Prime Cost = $6,320

Answer to Part 3.

Manufacturing Overhead = Depreciation on Factory Equipment + Production Supervisor’s Salary + Glue and Screws use in the Keyboard + Utilities for the Factory

Manufacturing Overhead = $900 + $2,210 + $270 + $1,210
Manufacturing Overhead = $4,590

Answer to Part 4.

Direct Labor = Wages of person who installs the Speaker + Wages of person who attaches legs to Keyboard

Direct Labor = $2,990 + $2,130
Direct Labor = $5,120

Answer to Part 5.

Conversion Cost = Wages of person who installs the Speaker + Wages of person who attaches legs to Keyboard + Depreciation on Factory Equipment + Production Supervisor’s Salary + Glue and Screws use in the Keyboard + Utilities for the Factory

Conversion Cost = $2,990 + $2,130 + $900 + $2,210 + $270 + $1,210
Conversion Cost = $9,710