Question

The following information relates to Carried Away Hot Air Balloons, Inc.:Advertising Costs $16,800Sales Salary 15,200Sales Revenue 570,000President's Salary 51,000Office Rent 55,000Manufacturing Equipment Depreciation 1,500Indirect Materials Used 5,700Indirect Labor 10,300Factory Repair and Maintenance 860Direct Materials Used 23,710Direct Labor 34,600Delivery Vehicle Depreciation 930Administrative Salaries 22,400How much was Carried Away's manufacturing overhead?

Answer 1

Answer:

$76.670

Explanation:

Manufacturing overhead is the category where all the direct and not-direct cost and expenses are incurred when a product is manufactured. Manufacturing overhead includes depreciation of manufacturing equipment, factory repair and maintenance, the direct and indirect cost of labor, and direct and indirect material used. Other expenses and costs not directly related to the manufacture of products must not be included. Expenses and costs not included (within this question): sales of sales and president salaries, advertising and office rent (if it is not explicitly broke down between factory and office spaces).