A company which manufactures 3 types of automobiles (standard, mid classm and luxury incurred the following costs for March
- 18,000 for production materials used on all cars such as tires and glass
- 14,000 for leather used exclusively on the luxury line of cars
-2,000 for tire rims to be used on the mid-class line for all cars
- 3,000 for glue to be used in the manufacturing process for all cars
- 14,000 for insurance (half for administrative activities, half for production activities)
- 9,000 for production employee’s wages who work on all three lines of cars
- 8,000 for rent (75% for the production facility, 25% for the administrative offices)
What are the direct costs to the mid-line of cars total