Rhys Hoskins is the president of RH Corporation (RHC). RHC has provided the following partial listing of costs incurred during August: Marketing salaries $ 45,300 Utilities, factory $ 11,400 Administrative travel $ 102,300 Sales commissions $ 54,800 Indirect materials $ 39,500 Direct materials $ 166,400 Advertising $ 147,800 Depreciation of production equipment $ 47,000 Direct labor $ 91,700 Required: a. What is the total amount of manufacturing cost listed above?

$306,000

Explanation:

To determine manufacturing costs, consider only those cost that can be directly traced to the product manufactured and plant related costs.

Total Manufacturing Cost Calculation :

Factory Utilities                         $11,400

Indirect Materials                    $39,500

Direct Materials                     $166,400

Equipment Depreciation        $47,000

Direct labor                              $91,700

Total Manufacturing Cost    $306,000

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