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The following information has been provided for Hopen Enterprises:

Cost of goods manufactured $75,000
Work in process
Beginning 1,200
Ending 1,400
Direct labor 4,000
Materials placed in production 1,500
Factory overhead ?
What is the amount of factory overhead?
a. $2,000
b. $2,200
c. $1,400
d. $5,500

User Erictrigo
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1 Answer

5 votes

Final answer:

The calculated factory overhead for Hopen Enterprises based on the given information is $71,100. None of the provided multiple choice options match this calculated figure. There may be a mistake in the provided options or in the calculation.

Step-by-step explanation:

The student has provided information regarding Hopen Enterprises and has asked to find out the amount of factory overhead from the given data. Factory overhead can be determined using the cost of goods manufactured formula which is: Cost of Goods Manufactured = Beginning Work in Process + Direct Materials + Direct Labor + Factory Overhead - Ending Work in Process. Using the provided figures:

The only unknown in this formula is Factory Overhead. Inserting the known figures:

$75,000 = $1,200 + $1,500 + $4,000 + Factory Overhead - $1,400

The factory overhead therefore can be calculated as follows:

Factory Overhead = $75,000 - $1,200 - $1,500 - $4,000 + $1,400

Factory Overhead = $69,700 + $1,400

Factory Overhead = $71,100

Therefore, none of the multiple choice options (a, b, c, d) match the calculated factory overhead of $71,100. It is possible there might have been an error in the options provided or in the calculation, as based on the figures given, factory overhead is not equal to any of the presented options.

User Tracy Moody
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