Reference no: EM132596578

The monthly overheads for the company are as follows:

Production foremen salaries           1,500,000

Rent                                           2,000,000

Insurance                                       3,000,000

Depreciation of Factory Machinery         200,000

Depreciation of Office Equipment            250,000

Factory Utility costs                          1,900,000

Warehouse supervisor salaries            320,000

Salary of truck drivers                    150,000

Salesmen Salaries                     210,000

Office expenses                        70,000

Depreciation of Delivery Vans    100,000

Sales Promotion expenses              15,000

Fees to advertising agency             38,000

Salary of security guard in finished goods warehouse  120,000

Carriage Outwards      50,000

Depreciation: Showrooms 12,000

Question 1. Classify the overhead costs into the following categories:

a. Production/Factory Overheads

b. Administrative Overheads

c. Distribution Overheads

d. Selling Overheads