Answer:
The total overhead cost for May = $7,700
Explanation:
Given:
Direct labor cost = $18,000
Indirect labor cost = $5,800
Direct materials = $14,200
Property taxes on production facility = $860
Factory heat, lights and power = $920
Insurance on plant and equipment = $120
Now,
the overhead cost includes the costs that are not directly related with the production of the product i.e it includes:
Indirect labor, Property taxes on production equipment, Heat light and power,and Insurance on plant and equipment
Therefore,
The total overhead cost for May = $5,800 + $860 + $920 + $120
or
The total overhead cost for May = $7,700
