Compute factory overhead cost from the following costs: $\begin{array}{|l|l|}
\hline 20,000 & \text { Depreciation on factory buildings } \
\hline 25,000 & \text { Depreciation on office equipment } \
\hline 70,000 & \text { Direct materials used } \
\hline 3,000 & \text { Indirect labor } \
\hline & \
\hline
\end{array}$

Question

Quizplus · Accepted Answer

Factory overhead costs include indirect costs related to manufacturing, such as depreciation on factory buildings and indirect labor. Therefore, the factory overhead cost is $20,000 (depreciation on factory buildings) + $3,000 (indirect labor) = $23,000.

Compute Factory Overhead Cost from the Following Costs A) $23,000 B) $43,000 C) $70,000 D) $113,000

Compute Factory Overhead Cost from the Following Costs A) $23,000
B) $43,000
C) $70,000
D) $113,000