Crate Express Co. produces wooden crates used for shipping products by ocean lin
ID: 2542874 • Letter: C
Question
Crate Express Co. produces wooden crates used for shipping products by ocean liner. In 2017 Crate Express incurred the following costs Wood used in crate production Nails (considered insignificant and a variable expense) Direct labor Utilities for the plant: $58,000 $490 $41,200 $1,300 each month, plus $0.50 for each kilowatt-hour used each month Rent expense for the plant for the year $24,800 Assume Crate Express used an average 800 kilowatt-hours each month over the past year. (o) wnst is Crale Exieing costing aproch Total manufacturing costs Total manufacturing costsExplanation / Answer
a Wood used 58000 Nails 490 Direct labor 41200 Utilities 4800 =800*0.5*12 Total manufacturing costs 104490 b Wood used 58000 Nails 490 Direct labor 41200 Utilities 20400 =(1300*12)+(800*0.5*12) Rent 24800 Total manufacturing costs 144890