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27 March, 16:55

Rustic Living Furniture Company manufactures furniture at its central Kentucky factory. Some of its costs from the past year include:Wages paid to factory maintenance workers$60,000Fabric used to upholster furniture$80,800Wages paid to assemblyminus-line workers$100,100Lumber used to build product$15,200Sales commissions$7,300Insurance costs for factory$21,800Freightminus-in (on raw materials) $3,200Utilities in factory$12,500Factory supervisor salary$60,100Depreciation on factory equipment$18,300Utilities in sales office$26,800Costs of delivery to customers$8,500Depreciation on sales office$1,800Lubricants used in factory equipment$200Manufacturing overhead costs for Rustic Living Furniture Company totaled

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  1. 27 March, 20:42
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    Manufacturing overhead = $172,900

    Explanation:

    Giving the following information:

    Wages paid to factory maintenance workers $60,000: MOH

    Fabric used to upholster furniture $80,800: DM

    Wages paid to assembly line workers $100,100: DL

    Lumber used to build product $15,200: DM

    Sales commissions $7,300: Period

    Insurance costs for factory $21,800: MOH

    Freight in (on raw materials) $3,200: DM

    Utilities in factory $12,500: MOH

    Factory supervisor salary $60,100: MOH

    Depreciation on factory equipment $18,300: MOH

    Utilities in sales office $26,800: Period

    Costs of delivery to customers $8,500: Period

    Depreciation on sales office $1,800: Period

    Lubricants used in factory equipment $200: MOH

    First, we will categorize each cost in Direct material, direct labor, manufacturing overhead and period cost.

    Manufacturing overhead = Wages paid to factory maintenance workers + Insurance costs for factory + Utilities in factory + Factory supervisor salary + Depreciation on factory equipment + Lubricants used in factory equipment

    Manufacturing overhead = 60000 + 21800 + 12500 + 60100 + 18300 + 200 = $172,900
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