Steuben Company produces dog houses During 2013 Steuben Comp

Steuben Company produces dog houses. During 2013, Steuben Company incurred the following costs:

  

  

Based on the above information, the amount of period costs shown on Steuben\'s 12/31/2013 income statement is:

Multiple Choice

$30,000

$180,000

$150,000

$430,000

Rent on manufacturing facility Office manager\'s salary Wages of factory machine operators Depreciation on manufacturing equipment Insurance and taxes on selling and administrative offices Direct materials purchased and used $250,000 150,000 110,000 50,000 30,000 170,000

Solution

180,000 Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Office Managers Salary               150,000.00 Insurance and taxes on selling and administrative offices                 30,000.00 Period Costs = 150,000 + 30,000               180,000.00 Note - All the other costs are product costs …Thus ignored in computation