Metcash Ltd. manufactures home hardware supplies and allocates manufacturing overhead costs to production at a budgeted...

Metcash Ltd. manufactures home hardware supplies and allocates manufacturing overhead costs to production at a budgeted indirect-cost rate of $19 per direct labor-hour. The following data are obtained from the accounting records for December 2020:

Direct materials $380,000

Direct labour (3,200 hours @ $18/hour) 58,100

Indirect labour 12,000

Rent on Factory 44,000

Factory Equipment Depreciation 52,000

Electricity on Factory 11,000

Advertising expense 14,000

Administrative expenses 32,000

Calculate the actual amount of manufacturing overhead costs incurred in December 2020. Show all workings.

Expert Solution

Indirect labour	$ 12,000
Rent on Factory	$ 44,000
Factory Equipment Depreciation	$ 52,000
Electricity on Factory	$ 11,000
Actual manufacturing overhead costs inurred in December 2020	$ 119,000

ekkarill92 answered 1 year ago

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