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Selected data for Lemon​ Grass, Inc. for the year are provided​ below: Factory Utilities ​$1,000 Indirect Materials Used ​34,000 Direct Materials Used ​292,000 Property Taxes on Factory Building ​5,900 Sales Commissions ​85,000 Indirect Labor Incurred ​22,000 Direct Labor Incurred ​150,000 Depreciation on Factory Equipment ​6,800 What is the total manufacturing​ overhead?

Respuesta :

thaovtp1407

Answer:

$154,700

Explanation:

Given that:

  • Indirect Materials: 34,000
  • Direct Materials​: 292,000
  • Factory Utilities: ​1,000
  • Property Taxes: 5,900
  • Sales Commissions: 85,000
  • Indirect Labor : ​22,000
  • Direct Labor: 150,000
  • Depreciation on Factory Equipment: ​6,800

As we know that total manufacturing​ overhead are costs incurred to create the product or service that is not related to direct material or direct labor.

So our total manufacturing​ overhead in this question is:

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

= 1,000 + 34,000 +5,900 +​ 85,000 +  ​22,000 + 6,800  

= 154,700

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