Question

Selected data for Lemon​ Grass, Inc. for the year are provided​ below: Factory Utilities ​$1,000 Indirect Materials Used ​34,000 Direct Materials Used ​292,000 Property Taxes on Factory Building ​5,900 Sales Commissions ​85,000 Indirect Labor Incurred ​22,000 Direct Labor Incurred ​150,000 Depreciation on Factory Equipment ​6,800 What is the total manufacturing​ overhead?

Answer 1

Answer:

$154,700

Explanation:

Given that:

• Indirect Materials: 34,000
• Direct Materials​: 292,000
• Factory Utilities: ​1,000
• Property Taxes: 5,900
• Sales Commissions: 85,000
• Indirect Labor : ​22,000
• Direct Labor: 150,000
• Depreciation on Factory Equipment: ​6,800

As we know that total manufacturing​ overhead are costs incurred to create the product or service that is not related to direct material or direct labor.

So our total manufacturing​ overhead in this question is:

Factory Utilities +Indirect Materials Used + Property Taxes on Factory Building + Sales Commissions + Indirect Labor Incurred + Depreciation on Factory Equipment

= 1,000 + 34,000 +5,900 +​ 85,000 +  ​22,000 + 6,800  

= 154,700