Reference no: EM132692520
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
Question 1: Total indirect costs are:
A.$72,000.
B.$59,000
C.$39,000.
D.$70,000.
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