Question: Melinda’s Custom Homes, a construction company t…
Melinda’s Custom Homes, a construction company that builds custom-designed houses, incurred costs for the following items.
|Wages paid to construction crew||$||106,000|
|Production supervisor’s salary||$||55,000|
|Billboard advertising the company||$||8,000|
|Rent on office space||$||12,100|
|Depreciation on tools used at construction sites||$||31,000|
|Machine purchased to cut a special kind of tile requested by one customer-cannot be re-used||$||9,800|
|Gas for the company truck, used to haul supplies to
|Fees paid to electrical contractor, who charges a set amount per house||$||12,000|
|Depreciation on the company truck, used to haul supplies to construction sites (straight-line)||$||14,000|
Calculate each of the following, where the cost object is the houses built by the company:
a. Total variable costs.
b. Total fixed costs.
c. Total direct costs.
d. Total indirect costs.
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