The following report was prepared for evaluating the performance of the plant manager of Farrar Inc., Evaluate and correct this report.

Farrar Inc.

Manufacturing Costs

For the Quarter Ended June 30, 2014

Materials used in production (including

$62,500 of indirect materials) ............. $675,000Direct labor (including $93,750 maintenance salaries) ....625,000

Factory overhead:

Supervisor salaries ...................575,000

Heat, light, and power ................156,250

Sales salaries ......................387,500

Promotional expenses .................350,000

Insurance and property taxes––plant............168,750

Insurance and property taxes–corporate offices.......243,750

Depreciation–plant and equipment............137,500

Depreciation–corporate offices..............100,000

Total ....................... $3,418,750