The following account balances has been extracted from Jimbob Co.'s general ledger: Direct materials used in production $ 200 , 000 Depreciation factory building $ 10 , 000 Depreciation factory equipment $ 50 , 000 Depreciation sales department automobiles $ 10 , 000 Direct wages factory employees $ 200 , 000 Sales department salaries and commissions $ 150 , 000 Factory manager’s salary $ 50 , 000 Utility costs factory $ 50 , 000 Utility costs sales office $ 20 , 000 \begin{array}{|l|r|}\hline ext { Direct materials used in production } & \$ 200,000 \\hline ext { Depreciation factory building } & \$ 10,000 \\hline ext { Depreciation factory equipment } & \$ 50,000 \\hline ext { Depreciation sales department automobiles } & \$ 10,000 \\hline ext { Direct wages factory employees } & \$ 200,000 \\hline ext { Sales department salaries and commissions } & \$ 150,000 \\hline ext { Factory manager ' s salary } & \$ 50,000 \\hline ext { Utility costs factory } & \$ 50,000 \\hline ext { Utility costs sales office } & \$ 20,000 \\hline\end{array} Direct materials used in production Depreciation factory building Depreciation factory equipment Depreciation sales department automobiles Direct wages factory employees Sales department salaries and commissions Factory manager’s salary Utility costs factory Utility costs sales office $200 , 000 $10 , 000 $50 , 000 $10 , 000 $200 , 000 $150 , 000 $50 , 000 $50 , 000 $20 , 000 What was the total of manufacturing overhead?A) $400,000.B) $160,000.C) $740,000.D) $110,000.

Question

The following account balances has been extracted from Jimbob Co.'s general ledger:  Direct materials used in production  $ 200 , 000  Depreciation factory building  $ 10 , 000  Depreciation factory equipment  $ 50 , 000  Depreciation sales department automobiles  $ 10 , 000  Direct wages factory employees  $ 200 , 000  Sales department salaries and commissions  $ 150 , 000  Factory manager’s salary  $ 50 , 000  Utility costs factory  $ 50 , 000  Utility costs sales office  $ 20 , 000 \begin{array}{|l|r|}\hline 	ext { Direct materials used in production }  &  \$ 200,000 \\hline 	ext { Depreciation factory building }  &  \$ 10,000 \\hline 	ext { Depreciation factory equipment }  &  \$ 50,000 \\hline 	ext { Depreciation sales department automobiles }  &  \$ 10,000 \\hline 	ext { Direct wages factory employees }  &  \$ 200,000 \\hline 	ext { Sales department salaries and commissions }  &  \$ 150,000 \\hline 	ext { Factory manager ' s salary }  &  \$ 50,000 \\hline 	ext { Utility costs factory }  &  \$ 50,000 \\hline 	ext { Utility costs sales office }  &  \$ 20,000 \\hline\end{array}  Direct materials used in production   Depreciation factory building   Depreciation factory equipment   Depreciation sales department automobiles   Direct wages factory employees   Sales department salaries and commissions   Factory manager’s salary   Utility costs factory   Utility costs sales office  ​ $200 , 000 $10 , 000 $50 , 000 $10 , 000 $200 , 000 $150 , 000 $50 , 000 $50 , 000 $20 , 000 ​ ​ What was the total of manufacturing overhead?A) $400,000.B) $160,000.C) $740,000.D) $110,000.

Taylor brown · Accepted Answer

Final Answer : B, Explanation :  Manufacturing overhead includes all manufacturing costs except direct materials and direct labor. Thus, it includes depreciation of factory building and equipment, factory manager's salary, and utility costs for the factory, totaling $10,000 + $50,000 + $50,000 + $50,000 = $160,000.

Definitions

Learning Objectives

Learning Objectives

Related questions