Selected data for Lemon Grass Company for 2015 is provided below: $$\begin{array} { | l | r | }
\hline \text { Factory Utilities } & \$ 1,500 \
\hline \text { Indirect Materials Used } & 37,500 \
\hline \text { Direct Materials Used } & 300,000 \
\hline \text { Property Taxes on Factory Building } & 6,900 \
\hline \text { Sales Commissions } & 85,000 \
\hline \text { Indirect Labor Incurred } & 25,000 \
\hline \text { Direct Labor Incurred } & 150,000 \
\hline \text { Depreciation on Factory Equipment } & 6,500 \
\hline
\end{array}$$ What is the total factory overhead?

Question

Selected data for Lemon Grass Company for 2015 is provided below: $$\begin{array} { | l | r | } 
\hline \text { Factory Utilities } & \$ 1,500 \
\hline \text { Indirect Materials Used } & 37,500 \
\hline \text { Direct Materials Used } & 300,000 \
\hline \text { Property Taxes on Factory Building } & 6,900 \
\hline \text { Sales Commissions } & 85,000 \
\hline \text { Indirect Labor Incurred } & 25,000 \
\hline \text { Direct Labor Incurred } & 150,000 \
\hline \text { Depreciation on Factory Equipment } & 6,500 \
\hline
\end{array}$$ What is the total factory overhead?

Quizplus · Accepted Answer

Factory overhead includes all indirect costs associated with manufacturing. This includes factory utilities ($1,500), indirect materials ($37,500), property taxes on the factory building ($6,900), indirect labor ($25,000), and depreciation on factory equipment ($6,500). Adding these gives $1,500 + $37,500 + $6,900 + $25,000 + $6,500 = $77,400.

Selected Data for Lemon Grass Company for 2015 Is Provided