Question

Robin Company has the following balances for the current month Direct materials used Direct labor Sales salaries Indirect labor Production manager's salary Marketing costs Factory lease 20,000 $17,900 12,750 $ 2,000 $ 5,700 $7,900 $ 3,900 What is Robin's total manufacturing overhead? O $7.900 O $11,600 O $37,900 O $15,600

Answer 1

The correct answer is $11,600

Manufacturing overhead consists of indirect costs incurred on the production of goods. Selling and Administrative Overheads incurred on selling and marketing of goods are not covered under manufacturing overheads.

Hence, Manufacturing overheads are Indirect Labor + Production Manager's Salary + Factory Lease

= $2,000 + $5,700 + $3,900

= $11,600