Answer:
The answer is $138,500.
Explanation:
The data provided includes:
WIP beginning = $10,500
WIP ending = $19,000
Cost of goods manufactured = $323,000
Direct material = $115,000
Direct labor = $78,000
We can calculate the total overhead using the formula:
Overheads = Total manufacturing costs - Direct materials - Direct labor
Where Total manufacturing cost = Cost of goods manufactured + Ending WIP - Beginning WIP,
= $323,000 + $19,000 - $10,500
= $331,500
Now, substituting values into the formula:
Overheads = $331,500 - $115,000 - $78,000
= $138,500
Therefore, the calculated overhead amount is $138,500.
