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Onxy Onxy
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7 years ago
Tia's Tea Manufacturing manufactures organic tea and applies manufacturing overhead costs to production at a budgeted indirect-cost rate of $8.00 per direct labor hour. The following data was obtained from the accountant's records for December 2012:

Direct materials   $100,000
Direct labor (2,000 hours @ $8 per hour)   $16,000
Indirect labor   $5,000
Plant facility rent   $25,000
Depreciation on plant machinery and equipment   $8,000
Sales and commissions paid   $10,000
Administrative expenses   $6,000

Compute the actual amount of manufacturing overhead cost occurred in December 2012.
A) $35,000
B) $38,000
C) $42,000
D) $50,000
E) $55,000
Textbook 
Managerial Accounting: Decision Making and Motivating Performance

Managerial Accounting: Decision Making and Motivating Performance


Edition: 1st
Authors:
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noitulovenoitulove
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Onxy Author
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#2
6 years ago
Was a lot harder than it appeared! Thanks
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#3
3 years ago Edited: 3 years ago, Shaira Jenille
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