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Accounting: Indirect Cost Material

JUS Company manufactures wooden rocking chairs. JUS identified the following three material costs in its production process for July:
$100,000 for springs for the rocking mechanism;
two springs at a cost of $10 each are used in each chair;
$1,700 for glue used as needed from one gallon containers;
$500 for stain used to touch up spots on the chairs.

The total cost that should have been assigned to indirect material for July was:
A) $102,200
B) $500
C) $2,200
D) $1,700

Solution Summary

Indirect cost materials for JUS Company is examined for three material costs.