Noteworthy, Inc., produces and sells small electronic keyboards. Assume that you have the following information about Noteworthy’s costs for the most recent month.Depreciation on factory equipment $ 890 Depreciation on CEO's company car 130 Speakers used in the keyboard 1,140 Production supervisor's salary 2,320 Glue and screws used in the keyboards 260 Wages of persons who install the speakers 2,970 Cost to run an ad on local radio stations 615 Utilities for the factory 1,270 Personnel manager's salary 2,640 Wages of person who attaches legs to keyboards 2,060 Required:1. Calculate the total product cost for Noteworthy.2. Calculate the prime cost for Noteworthy.3. Calculate the manufacturing overhead for Noteworthy.4. Calculate the direct labor for Noteworthy.5. Calculate the conversion cost for Noteworthy.6. Calculate the total variable cost (with number of units produced as the activity) for Noteworthy.7. Calculate the total fixed cost (with number of units produced as the activity) for Noteworthy.
Accepted Solution
A:
Answer:Total Product Cost = $10,910
The prime cost for Noteworthy = $6170
Total manufacturing overhead = $4740
The direct labor $5030
Conversion cost $9770
Total Variable Cost $7,700
Total Fixed Cost $6,595Step-by-step explanation:a) Total Product Cost is includes the sum of :Depreciation on factory equipment $ 890Speakers used in the keyboard $1,140Production supervisor's salary $2,320Glue and screws used in the keyboards $260Wages of persons who install the speakers $2,970Utilities for the factory $1,270Wages of person who attaches legs to keyboards $2,060
-------------------------------------------------------------------------------------------------Total Product Cost = $10,910
b) The prime cost includes the sum of :Speakers used in the keyboard $1,140Wages of persons who install the speakers $2,970Wages of person who attaches legs to keyboards $2,060-------------------------------------------------------------------------------------------------The prime cost for Noteworthy = $6170
c) The manufacturing overhead Depreciation on factory equipment $ 890Production supervisor's salary $2,320Glue and screws used in the keyboards $260Utilities for the factory $1,270------------------------------------------------------------------------------------------------Total manufacturing overhead = $4740
d) The direct labor Wages of persons who install the speakers $2,970Wages of person who attaches legs to keyboards $2,060---------------------------------------------------------------------------------------------
The direct labor $5030
e) Conversion cost Direct Labor $5030Manufacturing overhead $4740 --------------------------------------------------------------------------------------------Conversion cost $9770
f) Total Variable CostSpeakers used in the keyboard $1,140Glue and screws used in the keyboards $260Wages of persons who install the speakers $2,970Wages of person who attaches legs to keyboards $2,060---------------------------------------------------------------------------------------------Total Variable Cost $7,700
g) Total Fixed Cost Depreciation on factory equipment $ 890Depreciation on CEO's company car $130Production supervisor's salary $2,320Cost to run an ad on local radio stations $615Personnel manager's salary $2,640----------------------------------------------------------------------------------------------Total Fixed Cost $6,595