The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer:

Direct material ..................................................................$2,100,000

Advertising expense ............................................................... 99,000

Depreciation on factory building ........................................ 115,000

Direct labor: wages ............................................................... 485,000

Cost of finished goods inventory at year-end ................... 115,000

Indirect labor: wages ........................................................... 140,000

Production supervisor’s salary ............................................. 45,000

Service department costs ................................................... 100,000

Direct labor: fringe benefits .................................................. 95,000

Indirect labor: fringe benefits ............................................... 30,000

Fringe benefits for production supervisor ........................... 9,000

Total overtime premiums paid ............................................ 55,000

Cost of idle time: production employees ........................... 40,000

Administrative costs ........................................................... 150,000

Rental of office space for sales personnel ........................ 15,000

Sales commissions ................................................................. 5,000

Product promotion costs .................................................... 10,000

All services are provided to manufacturing departments.

Cost of idle time is an overhead tern; it is not included in the direct labor wages given above.

The rental of sales space was made necessary when the sales offices were converted to storage space for raw material.

Required:

1. Compute each of the following costs for the year just ended:

(a) Total prime costs.

(b) Total manufacturing overhead costs.

(c) Total conversion costs.

(d) Total product costs.

(e) Total period costs.

2. One of the costs listed above is an opportunity cost. Identify this cost, and explain why it is an opportunity cost.