The Zig-Zag Company manufactures zippers for many clothing manufacturers. Actual

Question

The Zig-Zag Company manufactures zippers for many clothing manufacturers. Actual costs for 2018 were direct materials, $5,000; indirect materials, $1,600; direct labor, $12,000; and indirect labor, $4,000. Additional expenses for the year were factory utilities $3,500; depreciation of factory equipment, $1,300; advertising expense, $900; delivery expense on sales to customers, $1,700; and property taxes on factory buildings, $5,200. Which amount is the company's actual manufacturing overhead for 2018?

Select one:

a. $17,300

b. $11,600

c. $15,600

d. $10,000

Explanation / Answer

Calculate actual manufacturing overhead :

So answer is c) $15600

Indirect material 1600 Indirect labour 4000 Factory utilities 3500 Depreciation on factory equipment 1300 Property tax on factory building 5200 Total actual manufacturing overhead 15600

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