ACIS 2116 Study Guide - Midterm Guide: Income Statement, Variable Cost, Earnings Before Interest And Taxes
31 Jan 2020
School
Department
Course
Professor
Document Summary
An airline manufacturer incurred the following costs last month (in thousands of dollars). : airplane seats - dm, production supervisors" salaries - oh. : depreciation on forklifts in factory - oh. : machine lubricants - oh, factory janitors" wages - oh. : property tax on corporate offices period cost , factory utilities - oh. : cost of warranty repairs period cost. : depreciation on administrative offices - period . : cost of designing new plant layout - period, jet engines - dm. Requirements: assuming the cost object is an airplane, classify each cost as one of the following: direct material (dm), direct labor (dl), overhead (oh), or period cost. Oh = b + c + d + e + h = . Period = g + i + k + l = : calculate total product costs. Product costs = dm + dl + oh. Pc = 1,700 + 670 +420 = : calculate total prime costs.
