Answer:
service cost: 41,800
period cost: 20,590
Explanation:
delivery service cost: those who are related to the deliveries
Indirect materials 8,400
Depreciation on delivery equipment 11,200
Dispatcher's salary 5,000
Gas and oil for delivery trucks 3,200
Driver's salaries 14,000
Total: 41,800
period cost: those who can be linker directly or indirectly throught allocation of overhead into the delviery cost.
Repairs on office equipment 180
Office utilities 1,490
Office supplies 650
Property taxes on office building 870
Advertising 5,100
CEO's salary 12,000
*Repairs delivery equipment 300
Total: 20,590
While the repair are made on delivery equipment they cannot be linked to an specific delivery or allocated as they do not incease the capacity, this isn't maintenance this is repairs those, expense for the period.
