Question

Asteroid Industries accumulated the following cost information for the year:

Direct materials $16,000
Indirect materials 4,000
Indirect labor 8,500
Factory depreciation 12,800
Direct labor 37,000

Using the above information, total factory overhead costs would be:_______

a. $16,800.
b. $78,300
c. $53,000.
d. $25,300.
e. $12,800.

Answer 1

Answer:

Total Factory overhead costs=$25,300

Option D is correct ($25,300)

Explanation:

Factory overhead includes all the cost which are indirectly involved in the production. In order to find the factory overhead we will add all indirect costs and factory depreciation.

Factory overhead costs=Indirect materials +Indirect labor+Factory depreciation

Total Factory overhead costs=$4,000+$8,500+$ 12,800

Total Factory overhead costs=$25,300

Option D is correct ($25,300)