Question

Mariposa Manufacturing builds custom wooden cabinets. Mariposa Manufacturing has reported the following costs for the previous...

Mariposa Manufacturing builds custom wooden cabinets. Mariposa Manufacturing has reported the following costs for the previous year. Assume no production inventories.

Advertising $ 35,900
Cost of hardware (slides, handles, etc) $ 34,300
Cost of wood $ 116,400
Depreciation on production equipment $ 32,900
Factory property taxes $ 18,300
Factory rent $ 39,700
Glue $ 3,840
Production supervisor salary $ 41,000
Sales manager salary $ 41,100
Utilities for factory $ 24,500
Wages for maintenance workers $ 32,500
Wages of assembly workers $ 92,000
Wages of finishing workers $ 78,800


a. Compute the direct material costs.



b. Compute the direct labor cost.

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Answer #1
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a) Direct material cost $      150,700
cost of hardware $        34,300
cost of wood $      116,400
$      150,700
b) Direct labor cost $      170,800
wages of assembly workers $        92,000
Wages of finishing workers $        78,800
$      170,800
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