†The rental of sales space was made necessary when the sales offices were converted to storage space for raw material.

The following cost data for the year just ended pertain to Sentiments, Inc., a greeting card manufacturer:

Direct material$2,100,000 Advertising expense 99,000 Depreciation on factory building 115,000 Direct labor: wages 485,000 Cost of finished goods inventory at year-end 115,000 Indirect labor: wages 140,000 Production supervisor’s salary 45,000 Service department costs* 100,000 Direct labor: fringe benefits 95,000 Indirect labor: fringe benefits 30,000 Fringe benefits for production supervisor 9,000 Total overtime premiums paid 55,000 Cost of idle time: production employees§ 40,000 Administrative costs 150,000 Rental of office space for sales personnel† 15,000 Sales commissions 5,000 Product promotion costs 10,000

*All services are provided to manufacturing departments.

§Cost of idle time is an overhead item; it is not included in the direct-labor wages given above.

Required:

1. Compute each of the following costs for the year just ended:

 

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