Asked by Josmary Marquez on Jun 21, 2024
Verified
The following account balances has been extracted from Jimbob Co.'s general ledger:
Direct materials used in production $200,000 Depreciation factory building $10,000 Depreciation factory equipment $50,000 Depreciation sales department automobiles $10,000 Direct wages factory employees $200,000 Sales department salaries and commissions $150,000 Factory manager’s salary $50,000 Utility costs factory $50,000 Utility costs sales office $20,000\begin{array}{|l|r|}\hline \text { Direct materials used in production } & \$ 200,000 \\\hline \text { Depreciation factory building } & \$ 10,000 \\\hline \text { Depreciation factory equipment } & \$ 50,000 \\\hline \text { Depreciation sales department automobiles } & \$ 10,000 \\\hline \text { Direct wages factory employees } & \$ 200,000 \\\hline \text { Sales department salaries and commissions } & \$ 150,000 \\\hline \text { Factory manager's salary } & \$ 50,000 \\\hline \text { Utility costs factory } & \$ 50,000 \\\hline \text { Utility costs sales office } & \$ 20,000 \\\hline\end{array} Direct materials used in production Depreciation factory building Depreciation factory equipment Depreciation sales department automobiles Direct wages factory employees Sales department salaries and commissions Factory manager’s salary Utility costs factory Utility costs sales office $200,000$10,000$50,000$10,000$200,000$150,000$50,000$50,000$20,000
What was the total of manufacturing overhead?
A) $400,000.
B) $160,000.
C) $740,000.
D) $110,000.
Manufacturing Overhead
All manufacturing costs that are not directly attributable to a specific product, including indirect materials, indirect labor, and other indirect costs.
Depreciation Factory Building
This term relates to the allocation of the cost of a factory building over its useful life, reflecting its consumption and loss of value over time.
Direct Materials Used
Direct materials used are raw materials that are directly incorporated into a finished product and can be directly associated with the product.
- Acquire knowledge about how manufacturing overhead impacts the costs of products.
Verified Answer
TB
Taylor brownJun 23, 2024
Final Answer :
B
Explanation :
Manufacturing overhead includes all manufacturing costs except direct materials and direct labor. Thus, it includes depreciation of factory building and equipment, factory manager's salary, and utility costs for the factory, totaling $10,000 + $50,000 + $50,000 + $50,000 = $160,000.
Learning Objectives
- Acquire knowledge about how manufacturing overhead impacts the costs of products.