Southwest Distribution Inc.estimates the following expenditures: interest paid of $17,500;wages paid to workers of $74,600;overhead costs of $12,300;raw materials of $55,000;shipping costs of $7,100 and dividends paid to common stockholders of $15,000.What are the total production costs?

Question

Quizplus · Accepted Answer

Total production costs include wages, overhead costs, raw materials, and shipping costs. Adding these: $74,600 + $12,300 + $55,000 + $7,100 = $149,000. Interest and dividends are not included in production costs.