Question

B&T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,300; direct materials, $14,700; property taxes on production facility, $810; factory heat, lights and power, $970; and insurance on plant and equipment, $170. B&T Company's factory overhead incurred for May is:

Answer 1

Answer:

Overhead incurred for may is $8,250

Explanation:

Factory overheads are costs that don not contribute directly to production.They are also know as indirect costs and include items such as insurance costs,administrative expenses, licensing, insurance, facility upkeep costs etc.

In B&T's case factory overhead items include:

a) Indirect labor                                                -  $6300

b) Property taxes on production facility           - $810

C) Factory heat,lights and power                     - $970

d) Insurance of plant and equipment               - $170

Total factory Overhead for May = Indirect labor + Property taxes on production facility +Factory heat,lights and power + Insurance of plant and equipment

Total factory Overhead for May = 6300 + 810 + 970 + 170 =  $8250.