Question

Classifying Costs The following report was prepared for evaluating the performance of the plant manager of Marching Ants Inc. Evaluate and correct this report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used in production (including $57,200 of indirect materials) $618,200 Direct labor (including $85,900 maintenance salaries) 572,400 Factory overhead: Supervisor salaries 526,600 Heat, light, and power 143,100 Sales salaries 354,900 Promotional expenses 320,500 Insurance and property taxes—plant 154,500 Insurance and property taxes—corporate offices 223,200 Depreciation—plant and equipment 125,900 Depreciation—corporate offices 91,600 Total $3,130,900 Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 $ Factory overhead: $ Total manufacturing costs incurred $

Answer 1

Manufacturing costs for the quarter ended is:

Particulars	Amount
Materials used		561,000.00
Direct labor		486,500.00
Manufacturing overhead applied		1,093,200.00
Total manufacturing costs for the period		2,140,700.00

Factory overhead is:

Manufacturing overhead
Indirect labor	85,900
Indirect material	57,200
Supervisor salary	526,600
Heat light power	143,100
Insurance - plant	154,500
Depreciation - equipment	125,900
	1,093,200

Total manufacturing costs:

Particulars	Amount
Materials used		561,000.00
Direct labor		486,500.00
Manufacturing overhead applied		1,093,200.00
Total manufacturing costs		2,140,700.00