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12 October, 14:59

B&T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production facility, $800; factory heat, lights and power, $1,000; and insurance on plant and equipment, $200. B&T Company's factory overhead incurred for May is:

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  1. 12 October, 15:01
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    Factory overhead = $8,500

    Explanation:

    Giving the following information:

    B&T Company's production costs for May are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production facility, $800; factory heat, lights and power, $1,000; and insurance on plant and equipment, $200.

    Factory overhead = indirect labor + property taxes + factory heat, lights and power + insurance

    Factory overhead = 6,500 + 800 + 1,000 + 200 = $8,500
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