Question

Alton Company produces metal belts. During the current month, the company incurred the following product costs: Raw materials $100,000; Direct labor $75,000; Electricity used in the Factory $25,000; Factory foreperson salary $3,750; and Maintenance of factory machinery $2,000. Alton Company's total product costs:

A) $175,000.
B) $75,000.
C) $30,750.
D) $28,750

Answer 1

Correct answer is C.

$30750

Step-by-step explanation:

Indirect product cost:

Electricity used=25000

Factory foreman salary=3750

Maintenance of factory=2000

Total Indirect cost =25000+3750+2000=$30750