Crane incurred the following costs while manufacturing its product: Materials used in production, $144000; factory depreciation, $84000; property taxes on the administrative offices, $36000; labor costs of assembly-line workers, $119000; factory supplies used, $32000; advertising expense, $37000; property taxes on the factory, $44000; delivery expense, $47000; salaries of the sales staff, $77000; and sales commissions, $41000. The total product costs for Crane are O $583000. O $459000. O $661000. $423000.

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....
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Crane incurred the following costs while manufacturing its product: Materials used in production, $144000; factory depreciation,
$84000; property taxes on the administrative offices, $36000; labor costs of assembly-line workers, $119000; factory supplies used,
$32000; advertising expense, $37000; property taxes on the factory, $44000; delivery expense, $47000; salaries of the sales staff,
$77000; and sales commissions, $41000. The total product costs for Crane are
O $583000.
O $459000.
O $661000.
O $423000.
Toxtbook and Media
Transcribed Image Text:Crane incurred the following costs while manufacturing its product: Materials used in production, $144000; factory depreciation, $84000; property taxes on the administrative offices, $36000; labor costs of assembly-line workers, $119000; factory supplies used, $32000; advertising expense, $37000; property taxes on the factory, $44000; delivery expense, $47000; salaries of the sales staff, $77000; and sales commissions, $41000. The total product costs for Crane are O $583000. O $459000. O $661000. O $423000. Toxtbook and Media
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