The following balances were extracted from the books of a Manufacturing company at the end of December 2021. As the Cost Accountant you are required to classify the costs in different categories for management decisions. Details $ Production foremen salaries 1,260,000 Wages of production workers 3,800,000 Depreciation of factory machinery 600,000 Materials used to make products 5,625,000 Depreciation of office machinery 200,000 Warehouse supervisors salaries 500,000 License fee paid to manufacture products 300,000 Wages of truck drivers 750,000 Salesmen salaries 3,600,000 Electricity (see notes) 600,000 Salaries of the administrative staff 2,600,000 Carriage outwards 140,000 Insurance (see notes) 450,000 Notes: Apportion the following charges as indicated below: Details Factory Administration Distribution Selling Electricity 50% 30% 10% 10% Insurance 40% 20% 15% 25% 

Required: Calculate the total costs.

Answer rating: 100% (QA)

Lets break down the costs into different categories based on the information provided 1 Direct Costs ... View the full answer