Question

The Darwin Company reports the following information that occurred during the current period: Sales commissions expense $15,600 Direct materials used 7,300 Depreciation on factory equipment 4,700 Indirect labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales 76,500 Office salaries expense 8,900 Indirect materials used 1,200 Using the information provided above for Darwin Company, Manufacturing Overhead costs incurred for the period are calculated as:

Answer 1

Answer:

The Darwin Company

Calculation of Manufacturing Overhead costs:

= $17,200

Explanation:

a) Data and Calculations:

Depreciation on factory equipment        $4,700

Indirect labor                                              5,900

Factory rent                                                4,200

Factory utilities                                            1,200

Indirect materials used                               1,200

Total Manufacturing overhead costs = $17,200

b) Darwin's manufacturing overhead costs will include only the above listed costs.  Sales commissions, direct materials, direct labor, and office salaries expense do not form part of the manufacturing overhead costs.  The manufacturing overhead costs are neither direct materials or labor costs or selling and administration costs.