Homework SourseConsider the following costs for a manufacturing company Fac
Consider the following costs for a manufacturing company:
Factory Rent $425,000
Direct Labor 325,000
Factory Utilities 75,000
Secretary Salary65,000
Marketing Expenses460,000
Factory Depreciation85,000
Sales Office Rent35,000
Accounting Office Expenses 115,000
The total amount of product cost amounts to:
a
$ 825,000
b
$ 1,485,000
c
$ 910,000
d
$1,370,000
| a | $ 825,000 |
| b | $ 1,485,000 |
| c | $ 910,000 |
| d | $1,370,000 |
Solution
Calculate amount of product cost :
So answer is c) $910000
| Direct labour | 325000 |
| Factory rent | 425000 |
| Factory utilities | 75000 |
| Factory depreciation | 85000 |
| Total product cost | 910000 |
