Question

Alton Company produces metal belts. During the current month, the company incurred the following product costs: Raw materials $100,000; Direct labor $75,000; Electricity used in the Factory $25,000; Factory foreperson salary $3,750; and Maintenance of factory machinery $2,000. Alton Company's indirect product costs totaled:

Answer 1

Answer:

Total indirect product costs                        $30,750

Explanation:

The indirect product costs refer to all the costs that are associated with the manufacturing overheads and can be calculated as follows:

Electricity used in the Factory                   $25,000

Factory foreperson salary                          $3,750

Maintenance of factory machinery            $2,000

Total indirect product costs                        $30,750