Chapter 1, Problem 9E

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 $56,200 of indirect materials)	$ 607,500
Direct labor (including $84,400 maintenance salaries)	$62,500
Factory overhead:
Supervisor salaries—plant	517,500
Heat, light, and power-plant	140,650
Sales salaries	348,750
Promotional expenses	315,000
Insurance and property taxes—plant	151,900
Insurance and property taxes—corporate offices	219,400
Depreciation—plant and equipment	123,750
Depreciation—corporate offices	90,000
	$3,076,950