Using the data below, what is the total for fixed costs? Administrative salaries S75,000 Depreciation on production equipment 83,000 Manufacturing direct labor 81,000 Manufacturing direct materials 225,000 Advertising 54,000 Lease on headquarters' building 72,000 Indirect labor ** 29,000 Depreciation on sales equipment 37,000 Sales commissions 44,000 Production manager's salary 199,000 Indirect labor ** is a variable cost Total $899.000 $520,000 $483,000 $557,000 O $491,000

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter11: Cost-volume-profit Analysis
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Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....
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Using the data below, what is the total for fixed costs?
Administrative salaries
S75,000
Depreciation on production equipment
83,000
Manufacturing direct labor
81,000
Manufacturing direct materials
225,000
Advertising
54,000
Lease on headquarters' building
72,000
Indirect labor
**
29,000
Depreciation on sales equipment
37,000
Sales commissions
44,000
Production manager's salary
199,000
Indirect labor ** is a variable cost
Total
$899,000
$520,000
$483,000
O $557,000
O $491,000
Transcribed Image Text:Using the data below, what is the total for fixed costs? Administrative salaries S75,000 Depreciation on production equipment 83,000 Manufacturing direct labor 81,000 Manufacturing direct materials 225,000 Advertising 54,000 Lease on headquarters' building 72,000 Indirect labor ** 29,000 Depreciation on sales equipment 37,000 Sales commissions 44,000 Production manager's salary 199,000 Indirect labor ** is a variable cost Total $899,000 $520,000 $483,000 O $557,000 O $491,000
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