Question

2. What types of expenses are likely included in the total manufacturing overhead cost of $31,400 incurred for the first three months of operation? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) O Selling expense Administrative expense O Ending work in process inventory Rent for the production facility O Depreciation on the production equipment Insurance on the production equipment O Indirect materials used in producing records O Indirect labour related to the CEO's supervision of the production process (20% of her time). ............

Answer 1

In manufacuring overhead cost we include all those overheads which are associated in manufacturing a product other than direct material costs and direct labor costs. These overheads increases the burden of the factory and their inclusion is very much essential for calculating the cost of goods manufactured. The following overheads are included Rent for the Production Facility Depreciation on the Production Equipment Insurance on the Production Equipment Indirect materials used in producing records Indirect Labor related to the CEO's supervision of the production Process (20% of her time) Note; As the amount is not given I have written only the name of the overheads that are to be included.