Question

Glass Giant Company manufactures sunglasses. Following is a list of costs the company incurred during April.

Use the list to calculate the total manufacturing overhead costs for the month.

Data Table

Glue for frames $350, Depreciation on company cars used by sales force $3,500, Plant depreciation $6,000 ,interest expense $2,500,lenses $48,000,Company president's salary $26,000, plant foreman's salary$4,500 ,plant janitors wages1,400, Oil for manufacturing equipment $150.

Glass Giant Company Computation of total Manufacturing Overhead.

Answer 1

$12,400

Step-by-step explanation:

The computation of the total Manufacturing Overhead is shown below:

= Glue for frames + Plant depreciation + plant foreman's salary + plant janitors wages + Oil for manufacturing equipment

= $350 + $6,000 + $4,500 + $1,400 + $150

= $12,400

This cost is always reported only indirect cost with respect to the factory or production overhead cost