Classifying Costs

The following is a manufacturing cost report of Marching Ants Inc.

Marching Ants Inc.

Manufacturing Costs

For the Quarter Ended June $30$

Costs Type Amount

Materials used in production $($including

$$43,400$ of indirect materials$)$ $$468,900$

Direct labor $($including $$65,100$ maintenance salaries$)434,200$

Factory overhead:

Supervisor salaries$$plant $399,500$

Heat, light, and power$$plant $108,600$

Sales salaries $269,200$

Promotional expenses $243,200$

Insurance and property taxes$$plant $117,200$

Insurance and property taxes$$corporate offices $169,300$

Depreciation$$plant and equipment $95,500$

Depreciation$$corporate offices $69,500$

Total $$2,375,100$

Question Content Area

a$.1.$ Select the correct sentence for errors in the preceding report.

$1.$ The maintenance salaries of $$65,100$ and indirect materials of $$43,400$ should be included as factory overhead.

$2.$ The indirect materials of $$43,400$ should be included as factory overhead.

$3.$ The maintenance salaries of $$65,100$ should be included as factory overhead.

$4.$ Half of the maintenance salaries of $$65,100$ and indirect materials of $$43,400$ should be included as factory overhead.

a$.2.$ Select the correct sentence for errors in the preceding report.

$1.$ Sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead.

$2.$ Promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead.

$3.$ Sales salaries, promotional expenses, corporate office insurance and property taxes should not be included in factory overhead.

$4.$ Half of sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead.

Question Content Area

b$.$ Prepare a corrected report.

Marching Ants Inc.

Manufacturing Costs

For the Quarter Ended June $30$

Costs Type Amount Amount

$$-$ Select $-$

$-$ Select $-$

Factory overhead:

$$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

$-$ Select $-$

Total factory overhead Total factory overhead

Total $Total