The BT Companys production costs for May are direct labor 12

The B&T; Company\'s production costs for May are: direct labor, $12,000; indirect labor, $6,400; direct materials, $14,800; property taxes on production equipment, $800; heat, lights and power, $980; and insurance on plant and equipment, $180. B&T; Company\'s factory overhead incurred for May is: o $1,960. O $8,360. o $6,400. o $21,200. O $35,160

Solution

Dear student, only one question is allowed at a time. I am answering the first question

Only indirect costs related to production are considered in factory overhead

Direct labor and Direct materials are direct costs and so are not part of factory overhead

Factory overhead

= Indirect labor + Property taxes on production equipment + Heat, lights and power + Insurance on plant and equipment

= $6,400 + $800 + $980 + $180

= $ 8,360

So, as per above discussion, option B is the correct option