Question

Use the following data to compute total factory overhead costs for the month: Sales commissions $ 11,700 Direct labor 40,500 Indirect materials 16,100 Factory manager salaries 8,100 Factory supplies 9,900 Indirect labor 7,200 Depreciation—office equipment 5,900 Direct materials 41,400 Corporate office salaries 43,400 Depreciation—factory equipment 8,400

Answer 1

Explanation:

Overhead costs consists of indirect labor and indirect material costs. It cannot be traced directly to specific units produced.

According to this question,

Total factory overhead cost= Indirect materials+ Factory manager salary+ Factory supplies+ Indirect labor+ Depreciation- factory equipments

= 16,100+ 8,100+ 9,900+ 7,200+ 8,400= $49,700