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
