Selected data for Young Company for 2012 is presented below:
$\begin{array}{|l|r|}
\hline \text { Direct labor incurred } & \$ 30,000 \
\hline \text { Indirect labor incurred } & 21,000 \
\hline \text { Factory depreciation } & 5,000 \
\hline \text { Factory utilities } & 7,000 \
\hline \text { Indirect materials used } & 2,000 \
\hline \text { Direct materials used } & 12,000 \
\hline \text { Property taxes on factory building } & 3,000 \
\hline \text { Sales commissions } & 8,000 \
\hline
\end{array}$
What is the manufacturing overhead?
A) $47,000
B) $50,000
C) $38,000
D) $46,000

Question

Quizplus · Accepted Answer

Manufacturing overhead includes all manufacturing costs except direct materials and direct labor. Thus, it includes indirect labor ($21,000), factory depreciation ($5,000), factory utilities ($7,000), indirect materials used ($2,000), and property taxes on the factory building ($3,000). Adding these together gives $21,000 + $5,000 + $7,000 + $2,000 + $3,000 = $38,000.

Selected Data for Young Company for 2012 Is Presented Below