Asteroid Industries accumulated the following cost information for the year:

$\begin{array}{lr}
\text { Direct materials } & \$ 16,000 \
\text { Indirect materials } & 4,000 \
\text { Indirect labor } & 8,500 \
\text { Factory depreciation } & 12,800 \
\text { Direct labor } & 37,000
\end{array}$
Using the above information, total factory overhead costs equal:
A) $78,300.
B) $25,300.
C) $12,800.
D) $16,800.
E) $53,000.

Question

Asteroid Industries accumulated the following cost information for the year:

$\begin{array}{lr}
\text { Direct materials } & \$ 16,000 \
\text { Indirect materials } & 4,000 \
\text { Indirect labor } & 8,500 \
\text { Factory depreciation } & 12,800 \
\text { Direct labor } & 37,000
\end{array}$ 
Using the above information, total factory overhead costs equal:
A) $78,300.
B) $25,300.
C) $12,800.
D) $16,800.
E) $53,000.

Quizplus · Accepted Answer

Factory overhead costs include indirect materials, indirect labor, and factory depreciation. Therefore, the total factory overhead costs are $4,000 (indirect materials) + $8,500 (indirect labor) + $12,800 (factory depreciation) = $25,300.

Asteroid Industries Accumulated the Following Cost Information for the Year