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18 August, 04:45

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

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  1. 18 August, 05:08
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    Total fixed costs = $106,400

    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
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