Question

The company has provided the following estimated costs: Advertising expense $ 800 Direct labor 3,000 Direct materials 1,500 Indirect materials 400 Rent on factory equipment 1,000 Salary of production supervisor 2,000 Sales commissions 4,000 The total amount of estimated manufacturing overhead would be:

Answer 1

$3,400

Step-by-step explanation:

The total amount of estimated manufacturing overhead is calculated as;

= Salary of production supervisor + Indirect materials + Rent on factory equipment

Given that;

Salary of production supervisor = $2,000

Indirect materials = $400

Rent on factory equipment = $1,000

Therefore, Estimated manufacturing overhead ;

= $2,000 + $400 + $1,000

= $3,400