Chapter 2, Problem 42P

The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer:

*All services are provided to manufacturing departments.

^§Cost of idle time is an overhead item; it is not included in the direct-labor wages given above.

^†The rental of sales space was made necessary when the sales offices were converted to storage space for raw material.

Required:

1. 1. Compute each of the following costs for the year just ended: (a) total prime costs, (b) total manufacturing overhead costs, (c) total conversion costs, (d) total product costs, and (e) total period costs.
2. 2. One of the costs listed above is an opportunity cost. Identify this cost, and explain why it is an opportunity cost.