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26 July, 02:56

Alton Company produces metal belts. During the current month, the company incurred the following product costs: Raw materials $100,000; Direct labor $75,000; Electricity used in the Factory $25,000; Factory foreperson salary $3,750; and Maintenance of factory machinery $2,000. Alton Company's indirect product costs totaled:

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  1. 26 July, 04:12
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    Total indirect product costs $30,750

    Explanation:

    The indirect product costs refer to all the costs that are associated with the manufacturing overheads and can be calculated as follows:

    Electricity used in the Factory $25,000

    Factory foreperson salary $3,750

    Maintenance of factory machinery $2,000

    Total indirect product costs $30,750
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