The following report was prepared for evaluating the performance of the plant manager of Second Hand Inc. Evaluate and correct this report.
Second Hand Inc.
Manufacturing Costs
For the Quarter Ended March 31, 2010
Materials used in production (including
$50,000 of indirect materials) . . . . . . . . . . . . . . . . . . . . . . $ 540,000
Direct labor (including $75,000 maintenance salaries) . . . 500,000
Factory overhead:
Supervisor salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . 460,000
Heat, light, and power . . . . . . . . . . . . . . . . . . . . . . . . 125,000
Sales salaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 310,000
Promotional expenses . . . . . . . . . . . . . . . . . . . . . . . . 280,000
Insurance and property taxes—plant . . . . . . . . . . . . . 135,000
Insurance and property taxes—corporate offices . . . . 195,000
Depreciation—plant and equipment . . . . . . . . . . . . . . 110,000
Depreciation—corporate offices . . . . . . . . . . . . . . . . . 80,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,735,000