Question

Classifying Costs

The following is a manufacturing cost report 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
	$73,400 of indirect materials)	$792,800
Direct labor (including $110,100 maintenance salaries)		734,100
Factory overhead:
	Supervisor salaries—plant	675,400
	Heat, light, and power—plant	183,500
	Sales salaries	455,100
	Promotional expenses	411,100
	Insurance and property taxes—plant	198,200
	Insurance and property taxes—corporate offices	286,300
	Depreciation—plant and equipment	161,500
	Depreciation—corporate offices	117,500
Total		$4,015,500

Marching Ants Inc.
Manufacturing Costs
For the Quarter Ended June 30
Cost of direct materials used in production		$
Direct labor
Factory overhead:
Maintenance salaries	$
Indirect materials
Supervisor salaries-plant
Heat, light, and power-plant
Insurance and property taxes-plant
Depreciation-plant and equipment
Total factory overhead
Total manufacturing costs		$

Answer 1

Marching Ants Inc.
Manufacturing Costs
For the Quarter Ended June 30
Direct material used in production ($792,800-73,400)		$         719,400
Direct labor cost ($734,100-110,100)		$         624,000
Factory overhead:
Indirect materials	$        73,400
Maintenance salary	$      110,100
Supervisor salaries—plant	$      675,400
Heat, light, and power—plant	$      183,500
Insurance and property taxes—plant	$      198,200
Depreciation—plant and equipment	$      161,500
Total factory overhead		$      1,402,100
Total manufacturing costs		$      2,745,500