Question

B&T Company's production costs for May are: direct labor, $20,000; indirect labor, $5,600; direct materials, $14,000; property taxes on production facility, $880; factory heat, lights and power, $900; and insurance on plant and equipment, $100. B&T Company's factory overhead incurred for May is:

Answer 1

Factory overhead for the May month $7,480

Step-by-step explanation:

The computation of the factory overhead incurred is shown below:

Indirect labor $5,600

Property taxes on production equipment $880

Heat light and power $900

Insurance on plant and equipment $100

Factory overhead for the May month $7,480

We simply applied the above cost as they are not related to the production