Acme Inc incurs the following costs during May Required Calc

Acme, Inc., incurs the following costs during May:

Required:

Calculate Acme’s total manufacturing costs for May.

Sales expense	$13,100		Administrative expense	$23,100
Direct labor	27,600		Plant depreciation	7,800
Factory supplies	4,100		Indirect labor	9,600
Advertising	4,400		Utilities	11,600	*
Raw material used	19,600
*80% of this amount relates to the factory.

Solution

Direct materials $19,600 Direct labor $27,600 Manufacturing overhead: Factory supplies $4,100 Plant depreciation $7,800 Indirect labor $9,600 Utilities($11,600 × 80%) $9,280 $30,780 Total manufacturing cost $77,980