Answer:
Total overhead= $267,000
Explanation:
Giving the following information:
advertising expense, $99,500
depreciation expense - factory building, $147,500
direct labor, $264,500
direct material used, $314,500
factory utilities, $119,500
sales salaries expense, $164,500.
The overhead costs are all costs incurred involved in the production, but can't be directly assigned to a single product line.
Total overhead= depreciation of factory + factory utilities
Total overhead= 147,500 + 119,500= $267,000
Depreciation is not a cash disbursement.
