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
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
Chapter5: Process Costing
Section: Chapter Questions
Problem 2PB: The following product costs are available for Kellee Company on the production of eyeglass frames:...
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Question
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
Expert Solution
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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