KRD Supplies Corporation provided the following information for the year:Beginning Balance-Work-in-Process Inventory $24,000Ending Balance-Work-in-Process Inventory 56,000Beginning Balance-Raw Materials Inventory 83,000Ending Balance-Raw Materials Inventory 60,000Purchases-Raw Materials 362,000Direct Labor 470,000Indirect Labor 18,000Depreciation on Factory Plant and Equipment 24,000Plant Utilities and Insurance 272,000What was the amount of the manufacturing overhead costs?

Question

Anderson

Business

28 March, 18:08

KRD Supplies Corporation provided the following information for the year:Beginning Balance-Work-in-Process Inventory $24,000Ending Balance-Work-in-Process Inventory 56,000Beginning Balance-Raw Materials Inventory 83,000Ending Balance-Raw Materials Inventory 60,000Purchases-Raw Materials 362,000Direct Labor 470,000Indirect Labor 18,000Depreciation on Factory Plant and Equipment 24,000Plant Utilities and Insurance 272,000What was the amount of the manufacturing overhead costs?

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Answers (1)

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Sterling Patrick · Answer 1

The amount of the manufacturing overhead costs is $314,000

Explanation:

The computation of the manufacturing overhead cost is shown below:

= Indirect Labor + Depreciation on Factory Plant and Equipment + Plant Utilities and Insurance

= $18,000 + $24,000 + $272,000

= $314,000

The manufacturing overhead cost includes only indirect costs other than direct costs like direct labor, direct material, etc. Because of this, we do not considered it