A company incurred the following costs: $6,000 for indirect labor; $26,000 for direct labor; $2,500 for utilities for the factory building; $10,300 for factory equipment depreciation; $8,700 for office equipment depreciation. The total overhead costs reported on the schedule of cost of goods manufactured is

The total overhead costs reported on the schedule of cost of goods manufactured is $18,800.00

Examples of  overhead costs include :  

1. indirect labor costs  

2. rent  

3. indirect material costs.  

4. depreciation of plants and machinery

5. Sales and administrative cost

Total overhead costs = cost of indirect labour + depreciation of factory equipment + utilities  

$6,000 + $10,300 +  $2,500  = $18,800

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$18,800.00

Explanation:

Overhead costs are the indirect and fixed expenses that cannot be directly associated with a product. They are associated with the production or manufacturing of goods.

In this case

The manufacturing expenses that cannot be attached to a product are

Indirect labor:    $ 6,000.00

Factory utilities:    $ 2,500.00

factor equipment deprecation  $10,300.00

     $18,800.00

Total overhead costs are $18,800.00

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