4 Please specify direct cost or period cost incurred by each of the followings (3*5...
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4 Please specify direct cost or period cost incurred by each of the followings (3*5 marks) a. materials placed into production b. calibrating factory equipment C. labour placed into production d. cost of shipping a product to the customer e. advertising Shoe Express, Inc., manufactures two types of shoes, B-Ball and Marathon. The B-Ball shoe has a complex design that uses gel-filled compartments to provide support. The Marathon shoe is simpler to manufacture and uses conventional foam padding. Following is the data provided about these two products: B-Ball shoe Marathon shoe Direct Materials per unit $14 Direct Labour per unit $5.00 Direct labour hours per 0.80 unit $34 $17.00 2.0 BI Annual production 20,000 10,000 The company has a traditional costing system in which it applies manufacturing overhead to its products using a predetermined overhead rate based on direct labour cost. The firm's estimated total manufacturing overhead for the year is $453,960
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