Using the data below, what is the total for product costs? Administrative salaries $83,000 Depreciation on production equipment 75,000 Manufacturing direct labor 81,000 Manufacturing direct materials 199,000 Advertising 154,000 Lease on headquarters’ building 72,000 Indirect labor ** 29,000 Depreciation on sales equipment 44,000 Sales commissions 37,000 Production manager's salary 225,000 Indirect labor ** is a variable cost Total $999,000 O A. $646,000 В. $609,000 OC. $580,000 D. $534,000
Using the data below, what is the total for product costs? Administrative salaries $83,000 Depreciation on production equipment 75,000 Manufacturing direct labor 81,000 Manufacturing direct materials 199,000 Advertising 154,000 Lease on headquarters’ building 72,000 Indirect labor ** 29,000 Depreciation on sales equipment 44,000 Sales commissions 37,000 Production manager's salary 225,000 Indirect labor ** is a variable cost Total $999,000 O A. $646,000 В. $609,000 OC. $580,000 D. $534,000
Chapter5: Process Costing
Section: Chapter Questions
Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...
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Meaning of Product Cost :-
Product cost refers to the costs incurred to create a product. These costs include direct labor, direct material, consumable production supplies, and factory overhead. Product cost can also be considered the cost of the labor required to deliver a service to a customer.. In the latter case, product cost should include all costs related to a service, such as compensation, payroll taxes, and employee benefits.
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