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Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its

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Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its

Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year include:

Wages paid to maintenance workers    $60,000
Fabric used to upholster furniture    $8,000
Wages paid to assembly-line workers    $100,000
Lumber used to build product    $15,000
Sales commissions    $7,500
Insurance costs for factory    $21,000
Freight-in (on raw materials)    $3,000
Utilities in factory    $12,000
Factory supervisor salary    $60,000
Depreciation on factory equipment    $18,000
Utilities in sales office    $26,500
Costs of delivery to customers    $8,000
Depreciation on sales office    $1,000
Lubricants used in factory equipment    $500

Direct material costs for Rustic Living Furniture Company totaled
A) $8,000.
B) $26,000.
C) $23,000.
D) $15,000.

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Managerial Accounting

Edition: 4^th

Author: Braun

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bernie2981 Author

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9 years ago

Answers my question perfectly.

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Ashanti M.

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5 years ago

Thank you!

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