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