Question

the alstrom company's production costs for december are: direct labor, $18,500; indirect labor, $4,000; direct materials, $23,000; property taxes on production facility, $1,800; factory heat, lights and power, $1,250; and insurance on plant and equipment, $350. alstrom company's actual manufacturing overhead incurred for december is:

Answer 1

The real manufacturing overhead incurred by Alstrom Company in December was $7600.

The overall cost associated with running all production facilities for a manufacturing enterprise that cannot be linked directly to a product is known as factory overhead, also known as manufacturing overhead, work overhead, or factory burden in American English. Indirect labor and indirect costs are typically affected.

Alstrom Company's factory overhead incurred for December is

= Indirect labor + Property taxes on production facility + Factory heat, lights and power +  Insurance on plant and equipment

Factory Overhead = $4000 + $1800 + $1250 + $350

Therefore, factory Overhead incurred for December = $7600

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