The B&T Company's production costs for May are: direct labor,$13,000;indirect labor,$6,500;direct materials,$15,000;property taxes on production equipment,$800;heat,lights and power,$1,000;and insurance on plant and equipment,$200.B&T Company's factory overhead incurred for May is:

Question

Quizplus · Accepted Answer

Factory overhead includes all indirect costs of production, which are costs that cannot be directly traced to a product or service. In this case, the indirect labor, property taxes, heat, lights and power, and insurance on plant and equipment are all part of factory overhead. Therefore, the total factory overhead incurred for May is $6,500 + $800 + $1,000 + $200 = $8,500.

The B&T Company's Production Costs for May Are: Direct Labor,$13,000;indirect