Comet Company accumulated the following account information for the year:

$\begin{array}{lr}
\text { Beginning raw materials inventory } & \$ 6,000 \
\text { Indirect materials cost } & 2,000 \
\text { Indirect labor cost } & 5,000 \
\text { Maintenance of factory equipment } & 2,800 \
\text { Direct labor cost } & 7,000
\end{array}$
Using the above information, total factory overhead costs equal:
A) $9,800.
B) $16,800.
C) $15,800.
D) $13,000.
E) $7,800.

Question

Comet Company accumulated the following account information for the year:

$\begin{array}{lr}
\text { Beginning raw materials inventory } & \$ 6,000 \
\text { Indirect materials cost } & 2,000 \
\text { Indirect labor cost } & 5,000 \
\text { Maintenance of factory equipment } & 2,800 \
\text { Direct labor cost } & 7,000
\end{array}$ 
Using the above information, total factory overhead costs equal:
A) $9,800.
B) $16,800.
C) $15,800.
D) $13,000.
E) $7,800.

Quizplus · Accepted Answer

Factory overhead costs include indirect materials, indirect labor, and maintenance of factory equipment. Thus, $2,000 (indirect materials) + $5,000 (indirect labor) + $2,800 (maintenance) = $9,800.

Comet Company Accumulated the Following Account Information for the Year