Use the Following Data to Compute Total Manufacturing Costs for the Month

question 234

Multiple Choice

Use the following data to compute total manufacturing costs for the month:
$$\begin{array} { l | l } \text { Sales commissions } && \$ 10,800 \\\hline \text { Direct labor } & 39,600 \\\hline \text { Indirect materials } &&{ 15,200 } \\\hline \text { Factory manager salaries } & 7,200 \\\hline \text { Factory supplies } & 9,000\end{array}$$ $$\begin{array} { l | l } \text { Sales commis sions } && { \$ 10,800 } \\\hline \text { Direct labor } & 39,600 \\\hline \text { Indirect materials } && 15,200 \\\hline \text { Factory manager salaries } & 7,200 \\\hline \text { Factory supplies } & 9,000\end{array}$$ $\begin{array}{|l|c}\hline \text { Factory supplies } & 9,000 \\\hline \text { Indirect labor } && 6,300 \\\hline \text { Depreciation -office equipment} & 5,000 \\\hline \text { Direct materials} & 40,500 \\\hline \text { Corporate office salaries } & 42,500 \\\hline\text { Depreciation -factory equipment }&&7,500\end{array}$

• A) $125,300.
• B) $141,100.
• C) $45,200.
• D) $84,800.
• E) $58,300.

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Definitions:

Mezzanine Capital

is a form of financing that is a mix between equity and debt, often taking the form of convertible debt or subordinate debt, used by companies for expansion.

Bridge Capital

Temporary financing used to "bridge" the gap until longer-term funding can be arranged or until an anticipated event occurs, like a business sale.

Development Stage

A phase in a company's lifecycle focusing on developing its products, services, or business model, often requiring significant investment and carrying high risk.

Financial Know-How

The knowledge and skills related to managing finances, including budgeting, investing, and understanding financial markets and instruments.