Direct materials cost Janitor's salary Property taxes Direct labor cost Packaging costs Equipment depreciation (straight-line) Factory insurance Factory manager's salary $40,000 $2,500 $8,000 $68,000 $9,400 $12,000 $9,500 $6,400

Direct materials cost Janitor's salary Property taxes Direct labor cost Packaging costs Equipment depreciation (straight-line) Factory insurance Factory manager's salary $40,000 $2,500 $8,000 $68,000 $9,400 $12,000 $9,500 $6,400

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

First Household Company provided the following manufacturing costs for the month of March.

How much of the above would normally be considered fixed costs?

$40,000
$2,500
$8,000
$68,000
$9,400
$12,000
$9,500
$6,400
Direct materials cost
Janitor's salary
Property taxes
Direct labor cost
Packaging costs
Equipment depreciation (straight-line)
Factory insurance
Factory manager's salary

Definition Definition Total cost of procuring or producing a product or the cost that an individual or business owner undertakes for the manufacturing of goods.

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