Question

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

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
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Homework Answers

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.

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