Calculate the factory overheads cost? The following balances were extracted from the books of a Manufacturing company

  Calculate the factory overheads cost?

   

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The following balances were extracted from the books of a Manufacturing company at the end of December 2021. As the Cost Accountant you are required to classify the costs in different categories for management decisions. Details Office expenses 650,000 1,200,000 3,800,000 Depreciation of factory machinery 600,000 Materials used to make products 5,625,000 Depreciation of office machinery 200,000 Warehouse supervisors salaries 500,000 License fee paid to manufacture products 300,000 Wages of truck drivers 750,000 Salesmen salaries 3,600,000 Electricity (see notes) 600,000 Salaries of the administrative staff 4,000,000 Production foremen salaries Wages of production workers The following balances were extracted from the books of a Manufacturing company at the end of December 2021. As the Cost Accountant you are required to classify the costs in different categories for management decisions. Details Office expenses 650,000 1,200,000 3,800,000 Depreciation of factory machinery 600,000 Materials used to make products 5,625,000 Depreciation of office machinery 200,000 Warehouse supervisors salaries 500,000 License fee paid to manufacture products 300,000 Wages of truck drivers 750,000 Salesmen salaries 3,600,000 Electricity (see notes) 600,000 Salaries of the administrative staff 4,000,000 Production foremen salaries Wages of production workers

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To classify the costs in different categories we need to allocate the costs based on the given information Factory Overhead Cost Depreciation of facto... View the full answer