The accounting records of Diego Company revealed the following costs, among others: $$\begin{array} { l r }
\text { Factory insurance } & \$ 32,000 \
\text { Raw material used } & 256,000 \
\text { Customer entertainment } & 15,000 \
\text { Indirect labor } & 45,000 \
\text { Depreciation on salespersons' cars } & 22,000 \
\text { Production equipment rental costs } & 72,000
\end{array}$$ Costs that would be considered in the calculation of manufacturing overhead total:
A) $149,000.
B) $171,000.
C) $186,000.
D) $442,000.
E) None of the other answers are correct.

Question

The accounting records of Diego Company revealed the following costs, among others: $$\begin{array} { l r } 
\text { Factory insurance } & \$ 32,000 \
\text { Raw material used } & 256,000 \
\text { Customer entertainment } & 15,000 \
\text { Indirect labor } & 45,000 \
\text { Depreciation on salespersons' cars } & 22,000 \
\text { Production equipment rental costs } & 72,000
\end{array}$$ Costs that would be considered in the calculation of manufacturing overhead total:
A) $149,000.
B) $171,000.
C) $186,000.
D) $442,000.
E) None of the other answers are correct.

Quizplus · Accepted Answer

Factory insurance, indirect labor, depreciation on salespersons' cars, and production equipment rental costs are all considered manufacturing overhead costs.

The Accounting Records of Diego Company Revealed the Following Costs