Harrison Company reports the following cost information for August: What is the amount of manufacturing overhead incurred by Harrison Company in August?

Question

Harrison Company reports the following cost information for August:  What is the amount of manufacturing overhead incurred by Harrison Company in August?

Quizplus · Accepted Answer

Manufacturing overhead is the indirect costs incurred in the production process. The total manufacturing overhead cost is calculated by adding up all the indirect expenses, such as rent, utilities, depreciation, and indirect labor. From the given cost information, the total manufacturing overhead cost is:
Indirect materials $11,400
Indirect labor $20,200
Rent $7,000
Utilities $3,000
Depreciation $900
Total Manufacturing Overhead cost = $11,400 + $20,200 + $7,000 + $3,000 + $900 = $42,600

Harrison Company Reports the Following Cost Information for August