EXERCISE 5-12 (30 MINUTES)

60,000 MHs 90,000 MHs

Total factory overhead cost ... $174,000 $246,000 Deduct: Utilities cost @ $0.80 per MH*... 48,000 72,000 Supervisory salaries ... 21,000 21,000 Maintenance cost ... $105,000 $153,000 *$48,000 ÷ 60,000 MHs = $0.80 per MH