Question

America First Company provided the following manufacturing costs for the month of June. Direct materials cost $40,000 Janitor's salary $2,500 Property taxes $8,000 Direct labor cost $68,000 Packaging costs $9,400 Equipment depreciation (straight-line) $12,000 Factory insurance $9,500 Factory manager's salary $6,400 How much of the above would normally be considered fixed costs

Answer 1

Total fixed costs = $106,400

Step-by-step explanation:

Janitor´s salary = 2,500

Property taxes = 8,000

Direct labor costs = 68,000

Equipt deprec. = 12,000

Factory insurance = 9,500

Fac. manager´s sal = 6,400

T O T A L = $106,400