Question

Barry Company manufactures coats. The company accounting records during February show: Factory utilities - $950: Direct materials used in production. $21,650: Direct materials purchased during the month - $23,000; Direct labor costs - 515.210: Wages paid to workers providing direct labor. $16.100: Depreciation on factory equipment - 51.250: Insurance covering factory facilities - 51,100; Marketing expenses - 54.700: Factory supervisor salary - $3,500: Indirect manufacturing materials used . $1.090: Insurance covering administrative facilities - 52.100: Depreciation on administrative office furnishings - 55,500; Corporate executive salaries. $15,000. What are the total amount of manufacturing overhead costs assigned to the Manufacturing Overhead Account for February?

Answer 1

Manufacturing overhead cost

Manufacturing overhead includes other costs in production that are neither direct materials costs nor direct labor costs. It might also be referred as the factory burden or production overhead. This includes the costs of indirect materials, indirect labor, machine repairs, depreciation, factory supplies, insurance, electricity and etc..

Calculation of manufacturing overhead

Factory utilities	$950
Depreciation on factory equipment	1250
Insurance covering factory facilities	1100
Factory supervisor salary	3500
Indirect manufacturing material used	1090
Total manufacturing overhead	$7890

* All other cost are not related factory overhead cost.