Santana Corporation manufactures snowmobiles in its Blue Mountain, Wisconsin, plant. The following costs are budgeted for the first quarter’s operations.

Machine setup, indirect materials …….. $ 4,000

Inspections ……………. 16,000

Tests ……………… 4,000

Insurance, plant ……………110,000

Engineering design …………140,000

Depreciation, machinery ……….520,000

Machine setup, indirect labor …….. 20,000

Property taxes ………….. 29,000

Oil, heating …………… 19,000

Electricity, plant lighting ……….. 21,000

Engineering prototypes ……….. 60,000

Depreciation, plant …………210,000

Electricity, machinery ………… 36,000

Machine maintenance wages …….. 19,000



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