Use the following data to compute total factory overhead costs for the month: Sales commissions $ 11,700 Direct labor 40,500 Indirect materials 16,100 Factory manager salaries 8,100 Factory supplies 9,900 Indirect labor 7,200 Depreciation-office equipment 5,900 Direct materials 41,400 Corporate office salaries 43,400 Depreciation-factory equipment 8,400

Question

Yareli Joyce

Business

1 July, 17:14

Use the following data to compute total factory overhead costs for the month: Sales commissions $ 11,700 Direct labor 40,500 Indirect materials 16,100 Factory manager salaries 8,100 Factory supplies 9,900 Indirect labor 7,200 Depreciation-office equipment 5,900 Direct materials 41,400 Corporate office salaries 43,400 Depreciation-factory equipment 8,400

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Maliyah Butler · Answer 1

Overhead costs consists of indirect labor and indirect material costs. It cannot be traced directly to specific units produced.

According to this question,

Total factory overhead cost = Indirect materials + Factory manager salary + Factory supplies + Indirect labor + Depreciation - factory equipments

= 16,100 + 8,100 + 9,900 + 7,200 + 8,400 = $49,700