Question

Assume that a manufacturing company incurred the following costs: Direct labor $ 90,000 Advertising $ 40,000 Factory supervision $ 36,000 Sales commissions $ 15,000 Depreciation, office equipment $ 4,000 Indirect materials $ 5,000 Depreciation, factory building $ 20,000 Administrative office salaries $ 1,000 Utilities, factory $ 2,500 Direct materials $ 106,000 Insurance, factory $ 10,000 Property taxes, factory $ 7,000 What is the total amount of manufacturing overhead

Answer 1

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Answer 2

The manufacturing overhead is calculated by taking all the costs that are incurred directly for the manufacturing process of goods.

Costs incurred are as follows:

Direct labor $90,000  

Indirect Material $5,000

Depreciation factory building $20,000

Utilities (Factory) $2,500

Direct Materials $106,000

Factory $,7000

Total Manufacturing Overhead = $230,500

Therefore the answer to the question is $230,500

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