Arkham Company is a manufacturing company making furniture. It incurred the following costs in the current month:
|Cost of wood for furniture||72,000|
|Salary of CEO (chief executive officer)||180,000|
|Cost of nails for furniture||6,200|
|Depreciation on office equipment||14,000|
|Rent of factory building||22,000|
|Wages of assembly line workers||230,000|
|Salary of plant manager||56,000|
Compute the following:
a. Arkham's total factory overhead costs.
b. Arkham's total period costs.
c. Arkham's total prime costs.
Factory Manufacturing Overhead Cost:
Manufacturing overhead cost is the total cost that has been incurred that is not the direct cost so not attributable to the finished goods. Manufacturing overhead cost includes salary, rent, power expense, etc.
Answer and Explanation: 1
Sales commissions = $1,200
Factory utilities = $9,800
Cost of wood for furniture = $72,000
Salary of CEO = $180,000
Advertising costs =...
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fromChapter 22 / Lesson 35
Learn about manufacturing overhead. Understand what overhead is, learn the manufacturing overhead formula, and see how to calculate manufacturing overhead.