Question

All of the following companies manufacture toasters. The following costs were incurred by each company during September: Warner Co. Painted Trails Co. Catalina Inc. Sunrise Co. Direct labor $12,600 $9,750 $72,800 $36,200 Rent 68,000 4,250 97,400 55,000 Utilities 3,300 2,000 16,900 8,500 Heating elements 87,500 42,600 101,500 65,400 Depreciation 6,500 10,300 28,600 38,400 Required: 1. What is the total conversion cost for Warner Co.? 2. What is the total manufacturing overhead for Painted Trails Co.? 3. What is the total conversion cost for Catalina Inc.? 4. What is the total manufacturing overhead for Sunrise Co.?

Answer 1

	conversion cost = direct labor + manufacturing overhead
	manufacturing overhead = rent+utilities +depreciaiton
			warner	painted	catalina	sunrise
	Direct labor		12600	9750	72800	36,200
	Rent		68000	4,250	97,400	55,000
	utilities		3,300	2,000	16,900	8,500
	heating elements		87,500	42,600	101,500	65,400
	Depreciation		6,500	10,300	28,600	38,400
	total		177900	68900	317200	203,500
1)	total conversion cost for Warner co				90,400
2)	total manufacturing overhead for painted				16,550
3)	total conversion cost for catalina				215,700
4)	total manufacturing overhead for sunrise				101,900