Rustic living furniture company manufactures furniture at its central kentucky factory. some of its costs from the past year include: wages paid to factory maintenance workers$60,000fabric used to upholster furniture$80,800wages paid to assemblyminus−line workers$100,100lumber used to build product$15,200sales commissions$7,300insurance costs for factory$21,800freightminus−in (on raw materials)$3,200utilities in factory$12,500factory supervisor salary$60,100depreciation on factory equipment$18,300utilities in sales office$26,800costs of delivery to customers$8,500depreciation on sales office$1,800lubricants used in factory equipment$200manufacturing overhead costs for rustic living furniture company totaled

Manufacturing overhead= $172,900

Explanation:

Giving the following information:

Wages paid to factory maintenance workers $60,000: MOH

Fabric used to upholster furniture $80,800: DM

Wages paid to assembly line workers $100,100: DL

Lumber used to build product $15,200: DM

Sales commissions $7,300: Period

Insurance costs for factory $21,800: MOH

Freight in (on raw materials) $3,200: DM

Utilities in factory $12,500: MOH

Factory supervisor salary $60,100: MOH

Depreciation on factory equipment $18,300: MOH

Utilities in sales office $26,800: Period

Costs of delivery to customers $8,500: Period

Depreciation on sales office $1,800: Period

Lubricants used in factory equipment $200: MOH

First, we will categorize each cost in Direct material, direct labor, manufacturing overhead and period cost.

Manufacturing overhead= Wages paid to factory maintenance workers + Insurance costs for factory  + Utilities in factory + Factory supervisor salary  +  Depreciation on factory equipment  + Lubricants used in factory equipment

Manufacturing overhead= 60000 + 21800 + 12500 + 60100 + 18300 + 200= $172,900

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