Alameda Manufacturing manufactures a variety of wooden picture frames using recycled wood from old barns. Alameda Manufacturing
Question:
Alameda Manufacturing manufactures a variety of wooden picture frames using recycled wood from old barns. Alameda Manufacturing has reported the following costs for the previous year. Assume no production inventories?
Advertising……………………………………………………………………………………….$ 50,000
Cost of hardware (hangers, decorations, etc) ……………………………………………....$ 86,000
Cost of wood……………………………………………………………………………………$122,000
Depreciation on production equipment……………………………………………………….$ 33,000
Factory property taxes………………………………………………………………………….$ 16,000
Factory rent……………………………………………………………………………………...$ 48,000
Glue………………………………………………………………………………………………$ 3,100
Production supervisor salary…………………………………………………………………..$ 41,000
Sales manager salary…………………………………………………………………………..$ 84,000
Utilities for factory……………………………………………………………………………….$ 26,000
Wages for maintenance workers………………………………………………………………$34,000
Wages of assembly workers…………………………………………………………………..$ 88,000
Wages of finishing workers……………………………………………………………………$ 74,000
a. Compute the direct material costs.
b. Compute the direct labor cost
c. Compute the manufacturing overhead.
d. Compute the total manufacturing cost.
e. Compute the prime cost.
f. Compute the conversion cost.
g. Compute the total period cost.
Expert Answer:
