Question

A partial listing of costs incurred at Gilhooly Corporation during September appears below: Direct materials $183,000 Utilities, factory $9,000 Administrative salaries $90,000 Indirect labor $25,000 Sales commissions $33,000 Depreciation of production equipment $25,000 Depreciation of administrative equipment $32,000 Direct labor $124,000 Advertising $148,000 The total of the manufacturing overhead costs listed above for September is: Group of answer choices $669,000 $366,000 $34,000 $59,000

Answer 1

Manufacturing overhead= $59,000

Step-by-step explanation:

Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured. We need to identify the indirect costs incurred in production. It includes the depreciation of factory equipment.

Manufacturing overhead= Utilities, factory + Indirect labor + Depreciation of production equipment

Manufacturing overhead= 9,000 + 25,000 + 25,000

Manufacturing overhead= $59,000