Question

Given: The Blue Bird Company’s for 2018 paid $35,000,000 in Direct Labor Wages. The company building is 150 foot x 150 foot. Building use: 15% for office area and 65% for manufacturing and 20% for warehouse. They employ 7 indirect workers. Various costs for year 2018 follows:

Description of Company Costs	Cost
Fringe Benefits for Direct and Indirect Labor	Fringe benefit % = 30% of Labor Costs
Salary people payroll NOT including fringes	$2,000,000 / year
Shop Supplies	$200,000 / year
Maintenance for shop area	$250,000 / year
Fringe Benefit rate for all salary personnel	35%
Building Mortgage	$0.60 /sq.ft./ month
Utilities for office space	$0.30/ sq. ft./ month
Utilities for warehouse and factory	$0.40/sq.ft./ month
Long term loan for equipment $400,000	$40,000 per year
Total purchase cost of parts going into XYZ1 & ABCD	$400,000 / year
Indirect laborer wages without Fringe Benefits/worker	$40,000 / year

1. _____________(A) What was the total overhead costs for the company for 2018? (3 points)

Answer 1