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Asteroid Industries accumulated the following cost information for the year: Direct materials $16,000 Indirect materials 4,000 Indirect labor 8,500 Factory depreciation 12,800 Direct labor 37,000 Using the above information, total factory overhead costs would be:

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Answer:

The answer would be $53000.

Explanation:

In simplest words, factory overhead costs or manufacturing overhead costs are the total amount of costs associated with the making of the product or on other factory tasks.  

Total manufacturing cost is found by adding all the cost of direct materials, direct labor and overheads. It is shown as below:

Total Overhead Cost = Direct materials + Direct Labor + Overheads

Here direct materials are $16000

Direct Labor = $37000

There are no overheads costs given, so overhead costs will be = 0

Now substituting the values in the formula, we get the following:

Total Overhead cost = 16000+37000+0= $53000

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