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15 June, 07:49

National Express reports the following costs and expenses in June 2017 for its delivery service. Indirect materials $6,700 Drivers' salaries $16,600 Depreciation on delivery equipment 11,700 Advertising 4,800 Dispatcher's salary 5,410 Delivery equipment repairs 440 Property taxes on office building 970 Office supplies 680 CEO's salary 12,300 Office utilities 1,000 Gas and oil for delivery trucks 2,600 Repairs on office equipment 220 Determine the total amount of (a) delivery service (product) costs and (b) period costs.

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  1. 15 June, 07:54
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    Cost for delivery service: 43,450

    Period Cost: 19,970

    Explanation:

    The cost, will be the direct labor and overhead, the rest are period cost.

    Direct Labor

    Driver salary 16,600

    Dispatcher's salary 5,410

    Overhead

    indirect materials 6,700

    Depreciaiton on delivery equipment 11,700

    Delivery euqipment repairs 440

    Gas and Oil for delivery truck 2,600

    Total Cost 43,450

    Period Cost

    Advertising 4,800

    property taxes on office building 970

    Office supplied 680

    CEO salary 12,300

    Office utilities 1,000

    Repair on office equipment 220

    Total Period Cost 19,970
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