Use the following data to compute total manufacturing costs for the month: Sales commissions $11,400 Direct labor 40,200 Indirect materials 15,800 7,800 Factory manager salaries Factory supplies 9,600 Indirect labor 6,900 Depreciation-office equipment Direct materials 5,600 41,100 Corporate office salaries 43,100 Depreciation-factory equipment 8,100 Multiple Choice O $146,500.
Use the following data to compute total manufacturing costs for the month: Sales commissions $11,400 Direct labor 40,200 Indirect materials 15,800 7,800 Factory manager salaries Factory supplies 9,600 Indirect labor 6,900 Depreciation-office equipment Direct materials 5,600 41,100 Corporate office salaries 43,100 Depreciation-factory equipment 8,100 Multiple Choice O $146,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![### Computing Total Manufacturing Costs
To compute total manufacturing costs for the month, we'll utilize the provided data. The costs are broken down into various categories:
- **Sales Commissions**: $11,400
- **Direct Labor**: $40,200
- **Indirect Materials**: $15,800
- **Factory Manager Salaries**: $7,800
- **Factory Supplies**: $9,600
- **Indirect Labor**: $6,900
- **Depreciation—Office Equipment**: $5,600
- **Direct Materials**: $41,100
- **Corporate Office Salaries**: $43,100
- **Depreciation—Factory Equipment**: $8,100
We'll identify and sum up the relevant manufacturing costs, which typically include:
- Direct Labor
- Direct Materials
- Factory-related costs (Factory Manager Salaries, Factory Supplies, Indirect Labor, Depreciation—Factory Equipment)
Other costs such as sales commissions, corporate office salaries, and depreciation of office equipment are not part of the manufacturing cost but are considered selling, administrative, or overhead expenses.
### Detailed Breakdown:
1. **Direct Labor**: $40,200
2. **Direct Materials**: $41,100
3. **Factory Manager Salaries**: $7,800
4. **Factory Supplies**: $9,600
5. **Indirect Labor**: $6,900
6. **Depreciation—Factory Equipment**: $8,100
### Calculation:
Total Manufacturing Cost = Direct Labor + Direct Materials + Factory Manager Salaries + Factory Supplies + Indirect Labor + Depreciation—Factory Equipment
Total Manufacturing Cost = $40,200 + $41,100 + $7,800 + $9,600 + $6,900 + $8,100
Total Manufacturing Cost = $113,700
### Conclusion:
The total manufacturing costs for the month are $113,700.
#### Note:
This figure doesn't include costs associated with sales, general and administrative expenses, or office equipment depreciation, which are calculated separately for a comprehensive understanding of total expenses.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe127e4e5-d52b-4869-85c0-a507349ba16c%2F6bdcd66d-efde-45d3-8422-699831d541ba%2F1l5ouch_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Computing Total Manufacturing Costs
To compute total manufacturing costs for the month, we'll utilize the provided data. The costs are broken down into various categories:
- **Sales Commissions**: $11,400
- **Direct Labor**: $40,200
- **Indirect Materials**: $15,800
- **Factory Manager Salaries**: $7,800
- **Factory Supplies**: $9,600
- **Indirect Labor**: $6,900
- **Depreciation—Office Equipment**: $5,600
- **Direct Materials**: $41,100
- **Corporate Office Salaries**: $43,100
- **Depreciation—Factory Equipment**: $8,100
We'll identify and sum up the relevant manufacturing costs, which typically include:
- Direct Labor
- Direct Materials
- Factory-related costs (Factory Manager Salaries, Factory Supplies, Indirect Labor, Depreciation—Factory Equipment)
Other costs such as sales commissions, corporate office salaries, and depreciation of office equipment are not part of the manufacturing cost but are considered selling, administrative, or overhead expenses.
### Detailed Breakdown:
1. **Direct Labor**: $40,200
2. **Direct Materials**: $41,100
3. **Factory Manager Salaries**: $7,800
4. **Factory Supplies**: $9,600
5. **Indirect Labor**: $6,900
6. **Depreciation—Factory Equipment**: $8,100
### Calculation:
Total Manufacturing Cost = Direct Labor + Direct Materials + Factory Manager Salaries + Factory Supplies + Indirect Labor + Depreciation—Factory Equipment
Total Manufacturing Cost = $40,200 + $41,100 + $7,800 + $9,600 + $6,900 + $8,100
Total Manufacturing Cost = $113,700
### Conclusion:
The total manufacturing costs for the month are $113,700.
#### Note:
This figure doesn't include costs associated with sales, general and administrative expenses, or office equipment depreciation, which are calculated separately for a comprehensive understanding of total expenses.
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