Question

Asteroid Industries accumulated the following cost information for the year:

Direct materials$15,000 Indirect materials 3,000 Indirect labor 7,500 Factory depreciation 11,800 Direct labor 36,000

Using the above information, total factory overhead costs equal:

Answer 1

Factory overhead costs = 3000 + 7500 + 11800 = $22,300

Step-by-step explanation:

Factory overhead costs are the costs that are not directly attributable to the production. This would include all the costs except for the direct materials and direct labor.

the total factory overhead costs would be,

Factory overhead costs = 3000 + 7500 + 11800 = $22,300

These costs are then allocated using the appropriate cost base to all the units produced.

Hope that helps.