Question

assume that a manufacturing company incurred the following: direct labor$ 90,000advertising$ 45,000factory supervision$ 35,000sales commissions$ 15,000depreciation, office equipment$ 10,000indirect materials$ 5,000depreciation, factory building$ 20,000administrative office salaries$ 1,000utilities, factory$ 2,500direct materials$ 105,000insurance, factory$ 6,000property taxes, factory$ 7,000what is the total fixed selling and administrative cost?

Answer 1

The total fixed selling and administrative cost for the manufacturing company is $56,000, which includes advertising, depreciation of office equipment, and administrative office salaries.

Step-by-step explanation:

To calculate the total fixed selling and administrative cost, we need to add up all the costs that do not vary with the level of production or sales. These costs typically include administrative expenses and other costs that remain constant regardless of the company's output.

In the given scenario, the fixed selling and administrative costs include:

• Advertising: $45,000
• Depreciation, office equipment: $10,000
• Administrative office salaries: $1,000

Adding these costs together, we get:

Total fixed selling and administrative costs = Advertising + Depreciation, office equipment + Administrative office salaries

Total fixed selling and administrative costs = $45,000 + $10,000 + $1,000

Total fixed selling and administrative costs = $56,000