Question

The following information relates to Carried Away Hot Air​ Balloons, Inc.: Advertising Costs $ 15 comma 800 Sales Salary 13 comma 800 Sales Revenue 650 comma 000 ​President's Salary 52 comma 000 Office Rent 66 comma 000 Manufacturing Equipment Depreciation 1 comma 000 Indirect Materials Used 8 comma 300 Indirect Labor 11 comma 100 Factory Repair and Maintenance 800 Direct Materials Used 22 comma 410 Direct Labor 35 comma 600 Delivery Vehicle Depreciation 940 Administrative Salaries 25 comma 000 How much was Carried​ Away's manufacturing​ overhead?

Answer 1

$21,200

Step-by-step explanation:

The computation of manufacturing​ overhead is shown below:-

Total manufacturing​ overhead = Indirect Labor + Indirect Materials + Factory Repair and Maintenance + Manufacturing Equipment Depreciation

= $11,100 + $8,300 + $800 + $1,000

= $21,200

Therefore for computing the total manufacturing overhead we simply added all relevant cost Indirect Labor, Indirect Materials, Factory Repair, and Maintenance, and Manufacturing Equipment Depreciation. The rest all cost is not relevant for total manufacturing cost.