Calculate the total Manufacturing Overhead Cost

Question

BlackTom AI · Accepted Answer

Manufacturing overhead includes all factory-related costs except direct materials and direct labor (examples: indirect materials, indirect labor, factory rent, depreciation on factory equipment, utilities, supervision, insurance, maintenance, and factory supplies). To compute total Manufacturing Overhead, list each overhead component and sum them.

Given the overhead components and amounts:
- Indirect materials: 6,500
- Indirect labor: 7,200
- Factory rent: 2,700
- Depreciation (factory equipment): 3,400
- Utilities (factory): 1,800
- Factory supervisor salary: 1,800
- Factory insurance: 700
- Maintenance and repairs: 900
- Factory supplies: 300

Step-by-step summation (showing intermediate results):
1. Indirect materials + Indirect labor = 6,500 + 7,200 = 13,700
2. Add factory rent: 13,700 + 2,700 = 16,400
3. Add depreciation: 16,400 + 3,400 = 19,800
4. Add utilities: 19,800 + 1,800 = 21,600
5. Add supervisor salary: 21,600 + 1,800 = 23,400
6. Add insurance: 23,400 + 700 = 24,100
7. Add maintenance: 24,100 + 900 = 25,000
8. Add factory supplies: 25,000 + 300 = 25,300

Therefore total Manufacturing Overhead Cost = 25,300.

Why this is correct: each listed item is a facility or indirect manufacturing expense (not direct material or direct labor), so including them and summing yields the overhead total. Common mistakes that produce incorrect answers include: (a) omitting indirect components such as supervisor salary or indirect materials, which would understate overhead; (b) accidentally including direct materials or direct labor, which would overstate overhead; or (c) double-counting depreciation or utilities. Any such error would change the sum from the correct 25,300.

Confirming final answer: the computed total Manufacturing Overhead Cost equals 25,300, which matches the provided correct answer.

Calculate the total Manufacturing Overhead Cost数值题

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