Selected Data for Lemon Grass Company for 2015 Is Provided

question 143

Multiple Choice

Selected data for Lemon Grass Company for 2015 is provided below: $$\begin{array} { | l | r | } \hline \text { Factory Utilities } & \$ 1,500 \\\hline \text { Indirect Materials Used } & 37,500 \\\hline \text { Direct Materials Used } & 300,000 \\\hline \text { Property Taxes on Factory Building } & 6,900 \\\hline \text { Sales Commissions } & 85,000 \\\hline \text { Indirect Labor Incurred } & 25,000 \\\hline \text { Direct Labor Incurred } & 150,000 \\\hline \text { Depreciation on Factory Equipment } & 6,500 \\\hline\end{array}$$ What is the total factory overhead?

• A) $450,000
• B) $612,000
• C) $77,400
• D) $62,400

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Definitions:

Sale of Goods

A commercial transaction involving the transfer of ownership of tangible personal property from a seller to a buyer for a price.

Disaffirm

The legal act of renouncing or repudiating a contract or agreement, particularly in cases where one party lacks the capacity to enter into the contract.

Contract of Purchase

A legal document outlining terms and conditions under which goods or services are sold by a seller to a buyer.

Ratification

The formal approval of an agreement or treaty by signing or giving formal consent, making it officially valid.