B&T Company's production costs for May are: direct labor, $18,000; indirect labor, $5,800; direct materials, $14,200; property taxes on production facility, $860; factory heat, lights and power, $920; and insurance on plant and equipment, $120. B&T Company's factory overhead incurred for May is:

Question

Business

Keely Bell

29 April, 10:36

B&T Company's production costs for May are: direct labor, $18,000; indirect labor, $5,800; direct materials, $14,200; property taxes on production facility, $860; factory heat, lights and power, $920; and insurance on plant and equipment, $120. B&T Company's factory overhead incurred for May is:

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Answers (1)

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Chelsea Clay · Answer 1

The total overhead cost for May = $7,700

Explanation:

Given:

Direct labor cost = $18,000

Indirect labor cost = $5,800

Direct materials = $14,200

Property taxes on production facility = $860

Factory heat, lights and power = $920

Insurance on plant and equipment = $120

Now,

the overhead cost includes the costs that are not directly related with the production of the product i. e it includes:

Indirect labor, Property taxes on production equipment, Heat light and power, and Insurance on plant and equipment

Therefore,

The total overhead cost for May = $5,800 + $860 + $920 + $120

or

The total overhead cost for May = $7,700