19 Jan

Melinda’s Custom Homes, a construction company

by jagguarpaw On: Accounting - 0 Comment

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
Wood	$	163,000
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
Sheet rock	$	98,000
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 construction sites	$	2,100
Paint	$	10,100
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
Insurance premiums	$	14,000
President’s salary	$	106,000
Bricks	$	95,000

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.

 

Tags: Melinda’s Custom, Melinda’s Custom Homes, Melinda’s Custom Homes a construction, Melinda’s Custom Homes a construction company Share

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