Compute the total indirect costs

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Question - Osborne Ltd manufactures a wide range of leather suitcases. The following costs are expected to be incurred by the company during May:

Indirect labour cost $28,000

Direct labour time 10,000 hours

Indirect labour cost $28,000

Direct labour time 10,000 hours

Depreciation on equipment $20,000

Rent and Rates $13,000

Direct labour costs $98,000

Heating, lighting and power $4,000

Machine time 8,000 hours

Indirect materials $5,000

Consumables $2,000

Direct materials used $50,000

Production estimate 1,000 suitcases

Required - Refer to the table above. Compute the total indirect costs?

A. $72,000.

B. $59,000

C. $39,000.

D. $70,000.

Reference no: EM132714879

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