Question

Asteroid Industries accumulated the following cost information for the year: Direct materials $15,200Indirect materials 3,200Indirect labor 7,700Factory depreciation 12,000Direct labor 36,200 Using the above information, total factory overhead costs equal: a. $74.300.b. $22,900. c. $12,000. d. $15,200. e. $51,400.

Answer 1

b. $22,900.

Step-by-step explanation:

The computation of the total factory overhead costs is shown below:

= Indirect materials + indirect labor + Factory depreciation

= $3,200 + $7,700 + $12,000

= $22,900

The total factory overhead costs deal with indirect costs only. It excluded the direct cost that means it does not consider the direct cost i.e direct material cost, direct labor cost, etc