Asteroid Industries accumulated the following cost information for the year: Direct materials $15,200Indirect materials 3,200Indirect labor 7,700Factory depreciation 12,000Direct labor 36,200 Using the above information, total factory overhead costs equal: a. $74.300. b. $22,900. c. $12,000. d. $15,200. e. $51,400.

Question

Business

Mr Kitty

12 April, 21:05

Asteroid Industries accumulated the following cost information for the year: Direct materials $15,200Indirect materials 3,200Indirect labor 7,700Factory depreciation 12,000Direct labor 36,200 Using the above information, total factory overhead costs equal: a. $74.300. b. $22,900. c. $12,000. d. $15,200. e. $51,400.

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Monique · Answer 1

b. $22,900.

Explanation:

The computation of the total factory overhead costs is shown below:

= Indirect materials + indirect labor + Factory depreciation

= $3,200 + $7,700 + $12,000

= $22,900

The total factory overhead costs deal with indirect costs only. It excluded the direct cost that means it does not consider the direct cost i. e direct material cost, direct labor cost, etc