Reference no: EM132714879
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.