Use the Following Data to Compute Total Factory Overhead Costs

question 191

Multiple Choice

Use the following data to compute total factory overhead costs for the month: $\begin{array}{lr}\text { Sales commissions } & \$ 10,800 \\\text { Direct labor } & 39,600 \\\text { Indirect materials } & 15,200 \\\text { Factory manager salaries } & 7,200 \\\text { Factory supplies } & 9,000 \\\text { Indirect labor } & 6,300 \\\text { Depreciation-office equipment } & 5,000 \\\text { Direct materials } & 40,500 \\\text { Corporate office salaries } & 42,500 \\\text { Depreciation-factory equipment } & 7,500\end{array}$

• A) $141,100.
• B) $125,300.
• C) $45,200.
• D) $84,800.
• E) $58,300.

---

Definitions:

Tax Bracket

The range of incomes taxed at particular rates, which increases progressively with higher earnings.

Corporate Bond

A type of debt security issued by corporations to raise capital, with the promise to repay the principal along with interest on specified dates.

Tax-Exempt

Financial earnings that are not subject to taxation by the government, often applied to certain bonds and municipal securities.

Preferred Stock

Nonvoting shares in a corporation, paying a fixed or variable stream of dividends.