Question

Factory utilities $ 13,500 Direct labor $79,100 12,650 Depreciation on factory equipment Factory manager's salary 8,000 Factory repairs 2,000 Indirect factory labor 48,900 2,640 Administrative office supplies used Indirect materials Sales salaries 48,400 Direct materials used 157,600 Advertising 23,000 How much is the manufacturing overhead in May? 1) $145,850 2) $36,150 3) $155,850 04) $158,490

Answer 1

a.	Manufacturing Overhead:
		$
	Factory utilities	13,500.00
	Depreciation on factory equipment	12,650.00
	Indirect factory labor	48,900.00
	Indirect materials	70,800.00
	Factory manager’s salary	8,000.00
	Factory repairs	2,000.00
	TOTAL	155,850.00
b.	Product costs:
		$
	Direct materials	157,600.00
	Direct labor	79,100.00
	Manufacturing Overhead	160,000.00
	TOTAL	396,700.00
c.	Period costs:
		$
	Sales salaries	48,400.00
	Advertising	23,000.00
	Administrative Office supplies used	2,640.00
	TOTAL	74,040.00