Answer:
A. Manufacturing Overhead = $177,990
B. Product Costs = $214,700
C. Period costs = $77,130
Explanation:
A. Manufacturing overhead is the combination of indirect labor, indirect cost, and indirect material.
Manufacturing overhead Amount
Factory utilities $16,200
Depreciation on factory equipment $14,350
Property taxes on factory building $2,800
Indirect factory labor $50,700
Indirect materials used $82,800
Factory repairs $3,040
Factory manager's salary $8,100
Total $177,990
Requirement B
B. Product cost is the cost that is directly aligned with the product. Alternatively, more precisely, it can be traceable with the manufacturing of a product. It is a combination of direct material and direct labor.
Product Cost Amount
Direct labor $73,000
Direct materials used 141,700
Total Product cost $214,700
Requirement C
C. Period cost is the cost that is not directly required to produce a product. However, that cost is necessary to measure the total cost incurred for a product manufactured. The example of product cost includes sales commission, office rent, and advertising expense.
Period Cost Amount
Sales salaries $51,000
Depreciation on delivery trucks 4,300
Repairs to office equipment 1,400
Advertising 16,800
Office supplies used 3,630
Total Period costs $77,130
