Q-4SE Computing manufacturing overhead... [FREE SOLUTION]

Chapter 16: Q-4SE (page 886)

Computing manufacturing overhead
Sunglasses Unlimited Company manufactures sunglasses. Following is a list of costs the company incurred during May. Use the list to calculate the total manufacturing overhead costs for the month.
Glue for frames $ 250
Depreciation on company cars used by sales force 4,000
Plant depreciation 7,500
Interest Expense 1,500
Lenses 52,000
Company president鈥檚 salary 24,500
Plant foreman鈥檚 salary 3,500
Plant janitor鈥檚 wages 1,300
Oil for manufacturing equipment 150

Expert verified

The total manufacturing overhead is $12,700

The manufacturing overhead is defined as the indirect cost which cannot be easily traceable to any specific product.

Sunglass Unlimited Company
Computation of total manufacturing overhead
Manufacturing Overhead	Amount ($)
Glues for frames	$250
Plant Depreciation	$7,500
Plant Foreman鈥檚 Salary	$3,500
Plant janitors鈥� salary	$1,300
Oil for manufacturing equipment	$150
Total manufacturing overhead	$12,700

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