Answer:
a. $39,650
b. $27,510
Explanation:
Product Costs is any expenditure that is Attached to a Product (Cost Object) and included in product valuation.Manufacturing costs are product costs.
Period Costs are Not Attached to Product or Cost Object. Non - Manufacturing Costs are Period Costs.
Note : Our Cost Object in this questions is delivery service
(a) delivery service (product) costs calculation
Drivers’ salaries                     16,900
Depreciation on delivery equipment    12,000
Dispatcher’s salary                   5,400
Delivery equipment repairs              450
Gas and oil for delivery trucks          2,900
Total product cost                   39,650
(b) delivery service period cost calculation
Indirect materials                    7,000
Advertising                          5,100
Property taxes on office building         930
Office supplies                        660
CEO’s salary                       12,500
Office utilities                        1,050
Repairs on office equipment             270
Total period cost                    27,510
