KRD Supplies Corporation provided the following information for the year:Beginning Balance-Work-in-Process Inventory $24,000Ending Balance-Work-in-Process Inventory 56,000Beginning Balance-Raw Materials Inventory 83,000Ending Balance-Raw Materials Inventory 60,000Purchases-Raw Materials 362,000Direct Labor 470,000Indirect Labor 18,000Depreciation on Factory Plant and Equipment 24,000Plant Utilities and Insurance 272,000What was the amount of the manufacturing overhead costs?

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Business

Diya

9 November, 06:06

KRD Supplies Corporation provided the following information for the year:Beginning Balance-Work-in-Process Inventory $24,000Ending Balance-Work-in-Process Inventory 56,000Beginning Balance-Raw Materials Inventory 83,000Ending Balance-Raw Materials Inventory 60,000Purchases-Raw Materials 362,000Direct Labor 470,000Indirect Labor 18,000Depreciation on Factory Plant and Equipment 24,000Plant Utilities and Insurance 272,000What was the amount of the manufacturing overhead costs?

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Answers (1)

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Nikolai Pugh · Answer 1

The amount of the manufacturing overhead costs is $314,000

Explanation:

The computation of the manufacturing overhead cost is shown below:

= Indirect Labor + Depreciation on Factory Plant and Equipment + Plant Utilities and Insurance

= $18,000 + $24,000 + $272,000

= $314,000

The manufacturing overhead cost includes only indirect costs other than direct costs like direct labor, direct material, etc. Because of this, we do not considered it