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 facility, $800; factory 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

The factory overhead costs are indirect expenses incurred by the company during production. These costs include indirect labor, property taxes on production facility, factory heat, lights and power and insurance on plant and equipment. Therefore, the factory overhead for B&T Company incurred for May is $6,500 (indirect labor) + $800 (property taxes) + $1,000 (factory heat, lights, and power) + $200 (insurance) = $8,500.

The B&T Company's Production Costs for May Are: Direct Labor