This Question: 1 pt 25 of 40 (16 complete) Mars Supplies Company provided the fo

Question

This Question: 1 pt 25 of 40 (16 complete) Mars Supplies Company provided the following information for the year Beginning Balance-Work-in-Process Inventory Ending Balance-Work-in-Process Inventory Beginning Balance-Direct Materials Inventory Ending Balance- Direct Materials Inventory Purchases Direct Materials Direct Labor Indirect Labor Depreciation on Factory Plant and Equipment Plant Utilities and Insurance $24,000 57,000 80,000 59,000 358,000 471,000 19,000 24,000 268,000 What was the amount of the manufacturing overhead costs? OA. $311,000 2 O B. $92,000 OC. $43,000 O D. $490,000

Explanation / Answer

The correct answer is option “ A” i.e =$ 311000( see working note)

Working Note: Manufacturing Overheads Cost

1.Depreciation on factory plant&Equipment=$ 24000

2. Plant utilities and Insurance--------------------$ 268000

3. Indirect Labour-------------------------------------$ 19000

Indirect labour is included because it is that labour which supports the production activity but is not directly involved in converting the materials into finished products.

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