Calculate the total factory overhead to be charged to Nooks.
A) $300,000
B) $400,000
C) $488,000
D) $600,000

Question

Quizplus · Accepted Answer

To calculate the total factory overhead, we need to add up all the indirect costs. 
Direct labor = $440,000 
Raw materials = $200,000 
Direct expenses = $48,000 
So, the total manufacturing cost = $440,000 + $200,000 + $48,000 = $688,000 
If we subtract the cost of goods sold (COGS) ($200,000) from the manufacturing cost, we get the total factory overhead 
Total factory overhead = $688,000 - $200,000 = $488,000 
Therefore, the correct answer is C.

Calculate the Total Factory Overhead to Be Charged to Nooks