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

Factory overhead includes all indirect costs of production, such as indirect labor, property taxes on production facility, factory heat, lights and power, and insurance on plant and equipment. Adding up those costs gives us $6,500 + $800 + $1,000 + $200 = $8,500. Therefore, the factory overhead incurred for May is $8,500.

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