The following information is available for Wonderway Inc for

The following information is available for Wonderway, Inc., for 2015: Factory rent Company advertising Wages paid to laborers Depreciation for president\'s vehicle Indirect production labor Utilities for factory Production supervisors salary President\'s salary Direct materials used Sales commissions Factory insurance Depreciation on factory equipment 29,200 21,000 83,700 8,040 1,930 30,200 32,000 60,400 35,000 7,610 3,500 27.200 Required 1. Calculate the direct labor cost for Wonderway. Labor Cost 2. Calculate the manufacturing overhead cost for Wonderway cturing Overt 3. Calculate the prime cost for Wonderway 16 6 4

Solution

1. Direct Labor    $83700

2. Manufacturing Overhead

= $29200 + $1930 + $30200 + $32000 + $13500 + $27200 = $134030

3. Prime Cost =$35000 + $83700 = $118700

4. Conversion Cost = $83700 + $134030 = $217730

5. Total Manufacturing Costs = $35000 + $83700 + $134030 = $252730

6. Period Expenses = $21000 + $8040 + $60400 + $7610 = $97050