Romeo manufacturing co has total sales at 120,000. Its direct labor cost is 15,000, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is 18,000 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. 1. What is the total manufacturing overhead cost? 2. What is the total direct materials cost? 3. What is the total manufacturing cost?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Romeo manufacturing co has total sales at 120,000. Its direct labor cost is 15,000, which represents 30% of its total
conversion cost and 40% of its total prime cost. Its total selling and administrative expense is 18,000 and its only
variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no
beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs.
1. What is the total manufacturing overhead cost?
2. What is the total direct materials cost?
3. What is the total manufacturing cost?
Transcribed Image Text:Romeo manufacturing co has total sales at 120,000. Its direct labor cost is 15,000, which represents 30% of its total conversion cost and 40% of its total prime cost. Its total selling and administrative expense is 18,000 and its only variable selling and administrative expense is a sales commission of 5% of sales. The company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. 1. What is the total manufacturing overhead cost? 2. What is the total direct materials cost? 3. What is the total manufacturing cost?
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