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

Factory overhead includes all indirect costs associated with production, such as indirect labor ($6,500), property taxes on the production facility ($800), factory heat, lights, and power ($1,000), and insurance on plant and equipment ($200). Adding these gives $6,500 + $800 + $1,000 + $200 = $8,500.

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