Week_4.1_-_Learning_Exercises_-_Student

Week_4.1_-_Learning_Exercises_-_Student - Direct and...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Direct and Indirect Costs What is the amount of indirect manufacturing costs? Cherry Computer assembles computers from components supplied by various manufacturers. Listed below are some of the costs that are incurred by the company this year. Insurance on the Assembly facility $3,000 Cost of hard drives installed in admin computers $50,000 Cost of advertising $5,000 Wages of employees who assemble $100,000 Salary of Shop Supervisor $60,000 Depreciation on testing and assembly Equipment $4,000 Wages of accountant $55,000 Solution:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Simple and easy to use; however, product costs can be seriously distorted. Overhead is assigned using a single overhead cost pool. 1000 units of each product are produced. Estimated overhead costs are: $3,000 Estimated direct labor cost is: $3,000 Overhead allocation per DLH $1 ProPats Hats Shirts Banners Direct Materials $5,000 $5,000 $5,000 6000 mat+lab Direct Labor $1,000 $1,000 $1,000 1000 est ovhd 7000 / 1000 u
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

Week_4.1_-_Learning_Exercises_-_Student - Direct and...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online