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. The accounting records of McCormick Company revealed the following costs: Fact

ID: 2567329 • Letter: #

Question

.   The accounting records of McCormick Company revealed the following costs:

           

Factory utilities

$ 64,000

Wages of assembly-line personnel

115,000

Customer entertainment

50,000

Indirect materials used

16,000

Depreciation on salespersons' cars

35,000

Production equipment rental costs

70,000

            Costs that would be considered in the calculation of manufacturing overhead total:

            A. $140,000.

            B. $175,000.

            C. $150,000.

            D. $255,000.

            E. $80,000.

Factory utilities

$ 64,000

Wages of assembly-line personnel

115,000

Customer entertainment

50,000

Indirect materials used

16,000

Depreciation on salespersons' cars

35,000

Production equipment rental costs

70,000

Explanation / Answer

Costs that would be considered in the calculation of manufacturing overhead total

so answer is c) $150000

Factory utilities 64000 Indirect materials used 16000 Production equipment rental costs 70000 Total manufacturing overhead 150000