Classifying Costs The following is a manufacturing cost report of Marching Ants Inc. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Materials used in production (including $60,500 of indirect materials) Direct labor (including $90,700 maintenance salaries) Factory overhead: Supervisor salaries-plant Heat, light, and power-plant Sales salaries Promotional expenses Insurance and property taxes-plant Insurance and property taxes-corporate offices Depreciation-plant and equipment Depreciation-corporate offices Total a. 1. Select the correct sentence for errors in the preceding report. 1. The maintenance salaries of $90,700 and indirect materials of $60,500 should be included as factory overhead. 2. The indirect materials of $60,500 should be included as factory overhead. 3. The maintenance salaries of $90,700 should be included as factory overhead. 4. Half of the maintenance salaries of $90,700 and indirect materials of $60,500 should be included as factory overhead. b. Prepare a corrected report. a. 2. Select the correct sentence for errors in the preceding report. 1. Sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. 2. Promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. 3. Sales salaries, promotional expenses, corporate office insurance and property taxes should not be included in factory overhead. 4. Half of sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Costs Type Amount Factory overhead: Total $653,300 604,900 556,500 151,200 375,000 338,700 163,300 235,900 133,100 96,800 $3,308,700 Total factory overhead Amount

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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The following is a manufacturing cost report of Marching Ants Inc. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Costs Type Amount Materials used in production (including $60,500 of indirect materials) $653,300 Direct labor (including $90,700 maintenance salaries) 604,900 Factory overhead: Supervisor salaries—plant 556,500 Heat, light, and power—plant 151,200 Sales salaries 375,000 Promotional expenses 338,700 Insurance and property taxes—plant 163,300 Insurance and property taxes—corporate offices 235,900 Depreciation—plant and equipment 133,100 Depreciation—corporate offices 96,800 Total $3,308,700 Question Content Area a. 1. Select the correct sentence for errors in the preceding report. 1. The maintenance salaries of $90,700 and indirect materials of $60,500 should be included as factory overhead. 2. The indirect materials of $60,500 should be included as factory overhead. 3. The maintenance salaries of $90,700 should be included as factory overhead. 4. Half of the maintenance salaries of $90,700 and indirect materials of $60,500 should be included as factory overhead. a. 2. Select the correct sentence for errors in the preceding report. 1. Sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. 2. Promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. 3. Sales salaries, promotional expenses, corporate office insurance and property taxes should not be included in factory overhead. 4. Half of sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. Question Content Area b. Prepare a corrected report. Marching Ants Inc. Manufacturing Costs For the Quarter Ended June 30 Costs Type Amount Amount $- Select - - Select - Factory overhead: $- Select - - Select - - Select - - Select - - Select - - Select - Total factory overhead Total factory overhead Total $Total

Classifying Costs
The following is a manufacturing cost report of Marching Ants Inc.
Marching Ants Inc.
Manufacturing Costs
For the Quarter Ended June 30
Materials used in production (including
$60,500 of indirect materials)
Direct labor (including $90,700 maintenance salaries)
Factory overhead:
Supervisor salaries-plant
Heat, light, and power-plant
Sales salaries
Promotional expenses
Insurance and property taxes-plant
Insurance and property taxes-corporate offices
Depreciation-plant and equipment
Depreciation-corporate offices
Total
a. 1. Select the correct sentence for errors in the preceding report.
1. The maintenance salaries of $90,700 and indirect materials of $60,500 should be included as factory overhead.
2. The indirect materials of $60,500 should be included as factory overhead.
3. The maintenance salaries of $90,700 should be included as factory overhead.
4. Half of the maintenance salaries of $90,700 and indirect materials of $60,500 should be included as factory overhead.
b. Prepare a corrected report.
a. 2. Select the correct sentence for errors in the preceding report.
1. Sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead.
2. Promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead.
3. Sales salaries, promotional expenses, corporate office insurance and property taxes should not be included in factory overhead.
4. Half of sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead.
Marching Ants Inc.
Manufacturing Costs
For the Quarter Ended June 30
Costs Type
Factory overhead:
Total
$653,300
604,900
Total factory overhead
556,500
151,200
375,000
338,700
163,300
235,900
133,100
96,800
$3,308,700
Amount Amount
00

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Step 1 Introduction

Manufacturing overhead - also known as production overhead, is the indirect expense of operating the manufacturing departments or divisions of the entity. Hence it includes all the expenses incurred during the year from receipt of the purchase order till the execution of the order. Examples are; depreciation on factory equipment, insurance of equipment, etc.

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