Question

The following is a manufacturing cost report of Marching Ants Inc.

Marching Ants Inc.

Manufacturing Costs

For the Quarter Ended June 30

1 Materials used in production (including $55,800 of indirect materials) $617,000.00

2 Direct labor (including $84,400 maintenance salaries 564,000.00

3 Factory overhead:

4 Supervisor salaries-plant 519,500.00

5 Heat, light, and power-plant 141,400.00

6 Sales salarie 346,500.00

7 Promotional expenses 313,000.00

8 Insurance and property taxes—plant 152,400.00

9 Insurance and property taxes—corporate offices 218,000.00

10 Depreciation—plant and equipment 123,500.00

11 Depreciation—corporate offices 88,000.00

12 Total $3,083,300.00

Amount Descriptions

Cost of direct materials used in production

Depreciation-corporate offices

Depreciation-plant and equipment

Direct labor

Heat, light, and power-plant

Indirect materials

Insurance and property taxes-corporate offices

Insurance and property taxes-plant

Maintenance salaries

Materials used in production (including indirect materials)

Promotional expenses

Sales salariesSupervisor salaries-plant

Total manufacturing costs

Evaluate and correct this report. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.

Answer 1

$2,117,800

Step-by-step explanation:

The computation of total manufacturing costs is presented below:

= Direct material used + direct labor incurred + manufacturing overhead cost

where,

Direct material used = $617,000 - $55,800

= $561,200

Direct labor incurred = $564,000 - $84,400

= $479,600

And, the manufacturing overhead cost would be

= Indirect material + maintenance salaries + Supervisor salaries of plant + Heat, light, and power of plant + Insurance and property taxes of plant + depreciation of plant and equipment

= $55,800 + $84,400 + $519,500 + $141,400 + $152,400 + $123,500

= $1,077,000

So, the Total manufacturing costs would be

= $561,200 + $479,600 + $1,077,000

= $2,117,800