Question

Acme, Inc., incurs the following costs during May:

Sales expense $ 12,100 Administrative expense $ 22,100
Direct labor 26,600 Plant depreciation 6,800
Factory supplies 3,100 Indirect labor 8,600
Advertising 3,400 Utilities 10,600
Raw material used 18,600
80% of this amount relates to the factory.
Required:
Calculate Acme�s total manufacturing costs for May.

Answer 1

Particulars Amount

Raw material used $18,600

Add: Direct labor $26,600

Overhead costs

Factory supplies $3,100

Plant depreciation $6,800

Indirect labor $8,600

Utilities ($10,600*80%) $8,480

Total overhead cost $26,980

Total manufacturing costs $72,180