The following information was obtained from Sizzler Company:
.Advertising costs: $7,900
.Indirect labor: $9,000
.Direct Labor: $31,000
.Indirect materials: $7,200
.Direct materials: $47,000
.Factory utilities: $3,000
.Factory supplies: $700
.Factory janitorial costs: $1,900
.Manufacturing equipment depreciation: $1,600
.Delivery vehicle depreciation: $790
.Administrative wages and salaries: $19,000
-How much was Sizzler's factory overhead?
A) $24,190
B) $1,600
C) $23,400
D) $3,600

Question

Quizplus · Accepted Answer

Factory overhead includes all manufacturing costs except direct materials and direct labor. Therefore, it includes indirect labor ($9,000), indirect materials ($7,200), factory utilities ($3,000), factory supplies ($700), factory janitorial costs ($1,900), and manufacturing equipment depreciation ($1,600), totaling $23,400.

The Following Information Was Obtained from Sizzler Company