Question

Managerial Accounting (ACC-260-E81) Fall 2020 Save Homework: Chapter 2 Homework MyLab Accou Score: 0 of 1 pt HW Score: 69.56%, 9.74 of 14 pts 7 of 14 (11 complete) Main Menu Question Help S2-10 (similar to) Assignments Forever Frames manufactures picture frames. Suppose the company's June records include the following items. B!! (Click the icon to view the items.) Do Homework What is Forever Frames's total manufacturing overhead cost in June? Take a Quiz/Test Forever Frames Computation of Total Manufacturing Overhead Manufacturing overhead: Total manufacturing overhead Choose from any list or enter any number in the input fields and then click Check Answer All parts showing Clear All Check Answer Terms of Use | Privacy Policy Copyright © 2020 Pearson Education Inc. All Rights Reserved. Type here to search O 9

Answer 1

Manufacturing Overhead is all indirect costs incurred during the production process other than Direct Material cost and Direct labour cost. Manufacturing Overhead does not include any cost of selling or administrative functions of business.

   Forever Frames

Computation of Total Manufacturing Overhead  

Manufacturing Overhead:

Oil for manufacturing equipment $ 250

Plant supervisor's salary $ 3,300

Plant janitor's salary $ 1,100

Plant depreciation expense    $ 10,000

Glue for picture frames    $ 550

Total Manufacturing Overhead $ 15,200

  

Here,

-Wood for Frame is a Direct material cost.

-Depreciation expense on company cars used by sales force isnot a manufacturing overhead cost

-Company president’s salary is not a manufacturing overheadcost.

-Interest expense is not a manufacturing overhead cost.

Alternative Answer can be made by making assumption that the glue for picture frame is taken as direct material cost and all other manufacturing overhead costs are same. Then total manufacturing cost will be $ 14650, i.e $ 15200 - $ 550.