Compute factory overhead cost from the following costs: $$\begin{array} { | l | r | }
\hline \text { Depreciation on factory buil dings } & \$ 45,950 \
\hline \text { Depreciation on office equipment } & 32,980 \
\hline \text { Direct materials used } & 96,840 \
\hline \text { Indirect labor } & 6,580 \
\hline
\end{array}$$
A) $73,000
B) $52,530
C) $96,840
D) $78,930

Question

Compute factory overhead cost from the following costs: $$\begin{array} { | l | r | } 
\hline \text { Depreciation on factory buil dings } & \$ 45,950 \
\hline \text { Depreciation on office equipment } & 32,980 \
\hline \text { Direct materials used } & 96,840 \
\hline \text { Indirect labor } & 6,580 \
\hline
\end{array}$$
A) $73,000
B) $52,530
C) $96,840
D) $78,930

Quizplus · Accepted Answer

Factory overhead costs include all costs associated with the production process except for direct materials and direct labor. In this case, the factory overhead costs are the sum of depreciation on factory buildings ($45,950) and indirect labor ($6,580), which totals $52,530.

Compute Factory Overhead Cost from the Following Costs A) $73,000 B) $52,530 C) $96,840 D) $78,930

Compute Factory Overhead Cost from the Following Costs A) $73,000
B) $52,530
C) $96,840
D) $78,930