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The accounting records of Diego Company revealed the following costs, among others:
Factory insurance $32,000
Raw material used $256,000
Customer entertainment $15,000
Indirect labor $45,000
Depreciation on salespersons' cars $22,000
Production equipment rental costs $72,000
Costs that would be considered in the calculation of manufacturing overhead total:
A. $149,000.
B. $171,000.
C. $186,000.
D. $442,000.
E. some other amount.

Respuesta :

Cricetus

Answer:

Option A ($149,000) is the correct alternative.

Explanation:

Given:

Factory insurance,

= $32,000

Indirect labor,

= $45,000

Production equipment rental costs,

= $72,000

Now,

The total manufacturing costs will be:

= [tex]Factory \ insurance+Indirect \ labor+Production \ equipment \ rental \ costs[/tex]

By putting the given values, we get

= [tex]32000+45000+72000[/tex]

= [tex]149,000[/tex] ($)

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