Water Source Inc. manufactures badminton rackets. The company estimates the following costs for the next year: Indirect factory wages $151,000 Supervisor salaries 56,000 Direct materials 221,000 Direct labor 149,000 Power and light 113,000 Depreciation of plant and equipment 74,000 Indirect materials 20,000 Insurance and property taxes 32,000 Determine the total factory overhead cost of the company.

$446,000

Explanation:

Factory overhead are indirect costs incurred by a company during production which can not be easily be traced to units produced.

factory overhead cost calculation :

Indirect factory wages                            $151,000

Supervisor salaries                                  $56,000

Power and light                                       $113,000

Depreciation of plant and equipment    $74,000

Indirect materials                                     $20,000

Insurance and property taxes                $32,000

Total                                                        $446,000

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101