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Direct and indirect costs of mad dogs
Course:- Managerial Accounting
Reference No.:- EM1347206




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Mad Dog Enterprises manufactures computer game control devices like joysticks and steering wheels. Following is the list of the costs incurred by Mad Dog in 2009:

Wages paid to assembly workers . . . . $100,000
Cost of plastic used in making devices . . . 25,000
Insurance on factory building . . . 12,000
Salary of factory supervisor . . . . 57,000
Interest on money borrowed to finance operations . . . 34,000
Wages paid to factory maintenance workers . . 61,000
Cost of computer/controller boards installed in devices . . . . . 38,000
Advertising costs . . . . . . . . . 127,000
Cost of electricity used in factory . . . . 46,000

Compute the total cost for each of the following categories:

1. Direct materials

2. Direct labor

3. Manufacturing overhead

4. Period costs




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