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Part 1

Better Products Company manufactures insulation and applies manufacturing overhead costs to production at a budgeted

indirectminuscost

rate of $19 per direct

laborminushour.

The following data are obtained from the accounting records for October 2020:

Direct materials	$410,000
Direct labor (3,400 hours @ $12/hour)	40,800
Indirect labor	21,000
Plant facility rent	51,000
Depreciation on plant machinery and equipment	42,000
Sales commissions	18,000
Administrative expenses	25,000

The actual amount of manufacturing overhead costs incurred in October 2020 totals ________.

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Part 1

A.

$118,000

B.

$114,000

C.

$262,400

D.

$157,000