Tentacle Television Antenna Company provided the following manufacturing costs for the month of June. $\begin{array}{|l|r|}
\hline\text { Direct labor cost } & \$ 132,000 \
\hline \text { Direct materials cost } & 84,000 \
\hline \text { Equipment depreciation } &\
\text { (straight-line) } & 24,000 \
\hline \text { Factory insurance } & 10,000 \
\hline \text { Factory manager's salary } &10,200 \
\hline \text { Janitor's salary } & 4000\
\hline \text { Packaging costs } & 18,600\
\hline\text { Property taxes }&16,000\
\hline
\end{array}$
From the above information,calculate Tentacle's total fixed costs.

Question

Tentacle Television Antenna Company provided the following manufacturing costs for the month of June. $\begin{array}{|l|r|}
\hline\text { Direct labor cost } & \$ 132,000 \
\hline \text { Direct materials cost } & 84,000 \
\hline \text { Equipment depreciation } &\
\text { (straight-line) } &  24,000  \ 
\hline \text { Factory insurance } & 10,000 \
\hline \text { Factory manager's salary } &10,200 \
\hline \text { Janitor's salary } &  4000\
\hline \text { Packaging costs } &  18,600\
\hline\text { Property taxes }&16,000\
\hline
\end{array}$
 From the above information,calculate Tentacle's total fixed costs.

Quizplus · Accepted Answer

Total fixed costs can be calculated by subtracting the total variable costs from the total manufacturing costs. 
Total variable costs = direct materials + direct labor + variable manufacturing overhead 
= $195,000 + $99,000 + $58,800 
= $352,800 
Total fixed costs = total manufacturing costs - total variable costs 
= $416,000 - $352,800 
= $63,200 
Therefore, the correct answer is D) $64,200, which is the closest option to the calculated answer.

Tentacle Television Antenna Company Provided the Following Manufacturing Costs for the Month