A greeting card company incurred the following costs associated with running its business last month: cardstock (thick paper), $9,820; ink, stickers, ribbons, and other card attachments, $7,520; rent on office space, $1,420; rent on factory space, $2,320; office salaries, $5,220; factory labor, $8,920; and advertising, $870. How much were its total product costs last month? Total product costs $enter the total product costs in dollars How much were its total period costs last month? Total period costs $enter the total period costs in dollars

A greeting card company incurred the following costs associated with running its business last month: cardstock (thick paper), $9,820; ink, stickers, ribbons, and other card attachments, $7,520; rent on office space, $1,420; rent on factory space, $2,320; office salaries, $5,220; factory labor, $8,920; and advertising, $870. How much were its total product costs last month? Total product costs $enter the total product costs in dollars How much were its total period costs last month? Total period costs $enter the total period costs in dollars

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 22E: Ellerson Company provided the following information for the last calendar year: During the year,...

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Current Attempt in Progress A greeting card company incurred the following costs associated with running its business last month: cardstock (thick paper), $10,000; ink, stickers, ribbons, and other card attachments, $7,700; rent on office space, $1,600; rent on factory space, $2,500; office salaries, $5,400; factory labor, $9,100; and advertising, $1,050. How much were its total product costs last month? Total product costs $ How much were its total period costs last month? Total period costs $
The service department at Major Motors sold $48,000 in service last month. They had direct costs of $16,500 to pay their technicians. They were not given credit for any parts sales or expenses because that was the responsibility of their separate parts department. They were, however, allocated $29,250 in fixed expenses. What is the gross profit Major Motors earned last month?
Smithfield Industries had the following production costs during the previous fiscal year: Indirect factory wages $72,000 Direct labor 357,000 Production supervisors' salaries 218,000 Accounting office salaries 182,000 Depreciation on factory equipment 34,000 Utilities expense in factory 13,000 Advertising 40,000 Direct materials for production 158,000 Property taxes on the factory 23,000 98,000 Sales manager's salary What is the total cost that would be reported on the factory overhead cost budget? a. $458,000 b. $337,000 c. $875,000 d. $360,000
Solve the following problem: The service department at Major Motors sold $48,000 in service last month. They had direct costs of $16,500 to pay their technicians. They were not given credit for any parts sales or expenses because that was the responsibility of their separate parts department. They were, however, allocated $29,250 in fixed expenses. What is the gross profit Major Motors earned last month?
Boris' Car Loft, Inc., began operations on January 1. It manufactures 10,000 automobiles and sold 8,000. It incurred the following costs during the year: Factory worker wages $ 10,000 Chief Financial Officer's salary 300,000 Factory rent 60,000 Factory materials 40,000 Corporate headquarters' rent 200,000 Calculate the total product cost for the year ended December 31.
Bank's Department Store has three departments: Men's, Women's, and Children's. The store incurred $22,000 of store rental costs during the current year. The departments identified the following cost drivers: Labor dollars Number of employees Square footage Number of sales transactions Multiple Choice $14,270 Men's $ 522,000 $1,425 28 2,200 292,000 Women's $ 767,000 38 7,200 892,000 Using the most appropriate cost driver, how much rental cost should be allocated to the Women's Department? Note: Do not round intermediate calculations. Round final answer to the nearest dollar. Children's $ 232,000 22 1,700 82,000
Burnham industries incurs the following costs for the month: Direct materials $2,000 Direct labor 3,000 Factory depreciation expense 3,500 Factory utilities expense 750 CEO's salary 4,000 What is the prime cost?
During its first year of operations, Silverman Company paid $16,360 for direct materials and $10,300 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,300 while general, selling, and administrative expenses totaled $4,800. The company produced 6,200 units and sold 3,800 units at a price of $8.30 a unit. What is Silverman's cost of goods sold for the year?
Brooks Company has the following balances for the current month: Direct materials used $24,000 Direct labor $40,000 Sales salaries $19,200 Indirect labor $4,800 Production manager's salary $9,600 Marketing costs $14,400 Factory lease $6,000 What is Brooks' total manufacturing overhead?
The cost of goods sold at a restaurant is $7,371 for a week. The labor cost at the restaurant is $5,931 for the same week. What is the prime cost for the restaurant this week?
Hughes Payroll and Clerical Services (HPCS) provides payroll, bookkeeping, and other services to small businesses. HPCS financial records show the following costs for last quarter (QTR 1): Supplies $ 14,000 Employee costs 1,015,000 Total administration 455,000 HPCS recorded 4,375 billable hours in QTR 1 and fixed administrative cost was $245,000. Assuming no change in billable hours in the next quarter (QTR 2), supplies costs are expected to increase by 24 percent. Direct labor costs are expected to increase by 50 percent. Variable administration per billable hour is expected to remain the same, but fixed administration cost is expected to decrease by 21 percent. Required: HPCS expects to bill 5,425 hours next quarter. What are the estimated direct materials, direct labor, variable overhead, and fixed overhead costs for next quarter (QTR 2)? Determine the total costs per billable hour for QTR 1 and QTR 2.
Wyckam Manufacturing Incorporated has provided the following estimates concerning its manufacturing costs: Fixed Cost per Month Cost per Machine-Hour Direct materials $ 5.70 Direct labor $ 42,300 Supplies $ 0.30 Utilities $ 1,000 $ 0.25 Depreciation $ 15,300 Insurance $ 11,700 For example, utilities should be $1,000 per month plus $0.25 per machine-hour. The company expects to work 4,200 machine-hours in June. Note that the company’s direct labor is a fixed cost. Required: Prepare the company’s planning budget for June.