If the indirect manufacturing labor is $20000, power cost is $5000, maintenance and supplies are of $10000 then the manufacturing budget will be ____________?
Correct answer: B. $35,000
- A. $5,000
- B. $35,000
- C. $15,000
- D. $45,000
Explanation
The manufacturing overhead budget combines indirect manufacturing labour, power, maintenance and supplies: $20,000 + $5,000 + $10,000 = $35,000. These are all manufacturing overhead costs.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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