WAEC Financial Accounting 2009 Question 11

Question 11

Manufacturing Accounts

Use the following information to answer questions 9 to 11.
Purchase of raw materials: D236,500
Returns of raw materials: D4,750
Carriage on raw materials: D34,000
Stock of raw materials at close: D39,500
Factory fuel: D150,000
Direct wages: D205,000
Indirect wages: D31,250
Factory power: D105,000
Work-in-progress at start: D32,500

The total factory overhead is

A.D 318,750
B.286,250
C.D 255,000
D.D 236,250

Show the answer and explanation

Answer: B (286,250)

Explanation

Factory overhead is the indirect factory costs: fuel D150,000 + indirect wages D31,250 + power D105,000 = D286,250.