Question

Below is information for Coming Home, Ltd. Based on this information, total factory overhead costs are:

Direct materials	$11,400
Indirect materials	$2,900
Direct labor	$5,100
Indirect labor	$3,500
Advertising costs	$900
Depreciation – Factory Equipment	$700
Office manager’s salary	$1,800
Factory utilities	$200
Delivery costs	$1,200
Depreciation – Main office Equipment	$400
Salesperson salaries	$2,500
Main office salaries	$6,900
Factory insurance	$5,200

	a.	$12,500
	b.	$13,700
	c.	$15,000
	d.	None of the other choices are correct
	e.	$7,300

Answer 1

Correct answer------------(a) $12,500

Working

Indirect materials	$          2,900
Indirect labor	$          3,500
Depreciation – Factory Equipment	$              700
Factory utilities	$              200
Factory insurance	$          5,200
Total manufacturing overhead	$        12,500

All factory cost other than direct material and direct labor are factory oerhead.

All costs other than factory costs are period costs.