Answer:
B&T Company's factory overhead incurred for May is $8,630.
Explanation:
Overhead cost are those cost which is not directly attributable to any product or service or department. All the indirect expenses are classified as overhead of the company e.g. rent, advertising, insurance, interest, legal fees, labor burden, repairs, accounting fees, taxes, utilities, telephone bills, travel expenditures and supplies.
Factory Overheads
Indirect labor $6,600
Property taxes on production facility $810
Factory heat, lights and power $1,010
Insurance on plant and equipment $210
Total Overhead cost $8,630
Answer:
$8630
Explanation:
Firstly, we need to know the meaning of factory overhead.
Factory overheads are the costs incurred during the throughout the manufacturing activities, exclusive of the costs of direct labor and direct materials. Example of factory overhead are
1. Factory utilities
2. Insurance on production
facilities and equipment
3.Property taxes on
production facilities
4. insurance on plant and
equipment
5. All forms of indirect labour etc
For the question above, the factory overhead is simply the sum of all the cost provided in the question except the cost of direct labour and direct materials.
Factory overhead=$6,600+$810+$1,010+$210 = $8630
