The Casual Furniture Company manufactures outdoor furniture and incurred the following costs during the month of January:
The manufacturing overhead is:

A) $14 500.
B) $15 000.
C) $9500.
D) $9000.

Learning Objectives

• Discern and arrange the costs involved in the production and value chain, taking into account manufacturing overheads and expenses not related to manufacturing.
• Develop an understanding of the rudimentary concepts of cost allocation, particularly in relation to indirect materials, labor expenses, and the process of costing products.