B&T Company's production costs for May are: direct labor, $16,000; indirect labor, $6,800; direct materials, $15,300; property taxes on production facility, $830; factory heat, lights and power, $1,030; and insurance on plant and equipment, $230. B&T Company's factory overhead incurred for May is:

Question

Ember

Business

16 January, 10:24

B&T Company's production costs for May are: direct labor, $16,000; indirect labor, $6,800; direct materials, $15,300; property taxes on production facility, $830; factory heat, lights and power, $1,030; and insurance on plant and equipment, $230. B&T Company's factory overhead incurred for May is:

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Answers (1)

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Dolly · Answer 1

B&T Company's factory overhead incurred for May is $8,890

Explanation:

Manufacturing overhead is all indirect costs incurred during the production process, includes indirect labor cost.

In B&T Company,

Factory overhead incurred for May = Indirect labor cost + property taxes on production facility cost + factory heat, lights and power cost + insurance on plant and equipment cost = $6,800 + $830 + $1,030 + $230 = $8,890