Determine the amount of manufacturing overhead given the following information:

Question

Quizplus · Accepted Answer

The given information shows that total manufacturing costs were $140,000, which can be divided into direct materials ($30,000), direct labor ($100,000), and manufacturing overhead (unknown). To determine overhead, we can use the formula:
Manufacturing overhead = Total manufacturing costs - (Direct materials + Direct labor)
Manufacturing overhead = $140,000 - ($30,000 + $100,000)
Manufacturing overhead = $10,000
However, the problem also states that the company incurred $250 of indirect materials, which are part of manufacturing overhead. Therefore, we need to add this to our calculation:
Manufacturing overhead = $10,000 + $250
Manufacturing overhead = $9,750
Therefore, the answer is C) $9,750.

Determine the Amount of Manufacturing Overhead Given the Following Information