Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: Rent on manufacturing facility $ 134,000 Office manager's salary 84,000 Wages of factory machine operators 64,000 Depreciation on manufacturing equipment 34,000 Insurance and taxes on selling and administrative offices 24,000 Direct materials purchased and used 94,000 Based on the above information, the amount of period costs shown on Steuben's income statement is:

Question

Business

Leia Ramsey

3 January, 08:54

Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs: Rent on manufacturing facility $ 134,000 Office manager's salary 84,000 Wages of factory machine operators 64,000 Depreciation on manufacturing equipment 34,000 Insurance and taxes on selling and administrative offices 24,000 Direct materials purchased and used 94,000 Based on the above information, the amount of period costs shown on Steuben's income statement is:

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Answers (1)

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Davin · Answer 1

Answer: $108,000

Explanation:

Given that,

Rent on manufacturing facility = $ 134,000

Office manager's salary = 84,000

Wages of factory machine operators = 64,000

Depreciation on manufacturing equipment = 34,000

Insurance and taxes on selling and administrative offices = 24,000

Direct materials purchased and used = 94,000

Period costs are the costs which are incurred for activities not related to manufacturing.

Therefore,

Period costs includes:

= Office manager's salary + Insurance and taxes on selling and administrative offices

= 84,000 + 24,000

= $108,000