Selected data for Lemonâ Grass, Inc. for the year are providedâ below: Factory Utilities $ 2 comma 800 Indirect Materials Used 36 comma 500 Direct Materials Used 303 comma 000 Property Taxes on Factory Building 6 comma 900 Sales Commissions 81 comma 000 Indirect Labor Incurred 20 comma 000 Direct Labor Incurred 149 comma 000 Depreciation on Factory Equipment 5 comma 100 What is the total manufacturingâ overhead?

Question

Business

Alfred Gilmore

25 February, 12:38

Selected data for Lemonâ Grass, Inc. for the year are providedâ below: Factory Utilities $ 2 comma 800 Indirect Materials Used 36 comma 500 Direct Materials Used 303 comma 000 Property Taxes on Factory Building 6 comma 900 Sales Commissions 81 comma 000 Indirect Labor Incurred 20 comma 000 Direct Labor Incurred 149 comma 000 Depreciation on Factory Equipment 5 comma 100 What is the total manufacturingâ overhead?

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Answers (1)

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Janiah Pope · Answer 1

Manufacturing overhead = $152,300

Explanation:

Giving the following information:

Factory Utilities $ 2,800

Indirect Materials Used $36,500

Direct Materials Used $303,000

Property Taxes on Factory Building $6,900

Sales Commissions $81,000

Indirect Labor Incurred $20,000

Direct Labor Incurred $149,000

Depreciation on Factory Equipment $5,100

Manufacturing overhead includes all costs that are involved in the production in general and need to be allocated to each product line.

Manufacturing overhead = Factory Utilities + Indirect Materials Used + Property Taxes on Factory Building + Sales Commissions + Indirect Labor Incurred + Depreciation on Factory Equipment

Manufacturing overhead = 2,800 + 36,500 + 6,900 + 81,000 + 20,000 + 5,100 = $152,300