Administrative salaries $35,000 Depreciation of factory equipment 28,000 Depreciation of delivery vehicles 11,000 Direct labor 71,000 Factory supplies used 15,000 Finished g

Administrative salaries $35,000

Depreciation of factory equipment 28,000

Depreciation of delivery vehicles 11,000

Direct labor 71,000

Factory supplies used 15,000

Finished goods inventory, January 1 60,000

Finished goods inventory, December 31 71,000

Factory insurance 18,500

Interest expense 15,000

Factory utilities 17,000

Factory maintenance 10,500

Raw materials inventory, January 1 11,000

Raw materials inventory, December 31 7,000

Raw material purchases 128,000

Rent on factory building 28,000

Repairs of factory equipment 14,500

Sales commissions 40,500

Goods in process inventory, January 1 6,500

Goods in process inventory, December 31 5,000

5.

What is the correct amount of overhead based on the Hayes Inc. information?

A. $201,000.

B. $131,500.

C. $212,000.

D. $156,000.

E. $86,500.

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