Deck 19: Introduction to Managerial Accounting and the Master Budget

Question 1

Which of the following statements is INCORRECT?

A) Management accounting information does not require an external audit.
B) The primary users of management accounting are the company's managers.
C) Management accounting information is used to help managers plan and control their operations.
D) Management accounting information is required to comply with accounting standards.

Answer 1

D

Question 2

Managerial accounting includes the controlling function.Which of the following items would be part of the controlling function of a business's managerial accounting?

A) Devising marketing and production plans
B) Setting product prices
C) Comparing actual performance to previously budgeted amounts
D) Creating detailed budgets

Answer 2

C

Question 3

Management is accountable to its suppliers and vendors in which of the following ways?

A) Repaying loans in a timely manner
B) Providing a return on the stakeholders' investment
C) Making timely payments and complying with contract terms
D) Providing products to customers that are safe and free of defects

Answer 3

C

Question 4

Which of the following is NOT an advantage of just-in-time inventory management?

A) Inventory kept for shorter periods of time reduces the amount of goods that become obsolete
B) Lower inventory levels and reduce storage cost
C) Surplus inventory is maintained to prevent production shut-down in case of supply interruption
D) Reducing the amount of insurance needed for lower levels of inventory

Question 5

Managerial accounting includes the planning function.Which of the following items would be part of the planning function of a business's managerial accounting?

A) Comparing actual performance to previously budgeted amounts
B) Evaluating results of operations
C) Creating detailed budgets
D) Implementing operational plans

Question 6

Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be filled?

A) Enterprise resource planning (ERP)
B) Just-in-time (JIT)
C) Total quality management (TQM)
D) Supply chain management (SCM)

Question 7

Which of the following statements is INCORRECT?

A) Managerial accounting is used to plan and control business operations.
B) Managerial accounting is used to report the company's financial position and results of operations to creditors and investors.
C) Managerial accounting is used to prepare budgets.
D) Managerial accounting is used to determine the cost of products and services.

Question 8

Which of the following is a management approach designed to set higher and higher goals in order to make continuous improvement?

A) Supply chain management (SCM)
B) Total quality management (TQM)
C) Just-in-time (JIT)
D) Enterprise resource planning (ERP)

Question 9

Management is accountable to its employees in which of the following ways?

A) Providing a return on the stakeholders' investment
B) Providing a safe workplace
C) Ensuring the business is environmentally responsible for impacts on the community
D) Providing products that are safe and free of defects

Question 10

What is total quality management?

A) A software system that integrates a company's functions, departments and data into a single system
B) A philosophy designed to integrate organisational areas in order to supply customers
C) An exchange of information with suppliers and customers to create efficient and effective processes
D) A system which speeds the transformation of raw materials into finished products

Question 11

Which of the following is a philosophy of providing customers with superior products and services?

A) Total quality management (TQM)
B) Enterprise resource planning (ERP)
C) Just-in-time (JIT) inventory management
D) Supply chain management (SCM)

Question 12

Budget preparation is a part of the planning process.

Question 13

Financial accounting is typically much more detailed than managerial accounting.

Question 14

Which of the following statements about managerial accounting is CORRECT?

A) Managerial accounting reports are audited annually by an independent CPA.
B) Managerial accounting reports help investors make decisions.
C) Managerial accounting reports must follow accounting standards.
D) Managerial accounting reports provide detailed information on parts of a company.

Question 15

Management is accountable to communities in which of the following ways?

A) Making timely payments to creditors
B) Obeying laws and paying taxes
C) Ensuring the company does not harm the surrounding environment
D) Providing a return on the stakeholders' investment

Question 16

Which of the following is NOT an objective of management accounting?

A) To provide information to business managers to assist them in planning for their business
B) To provide information to business managers to assist them in controlling their business
C) To assist business managers with respect to providing a return to the owners of the business
D) To provide information to shareholders to assist them with their investment decisions

Question 17

Which of the following BEST describes just-in-time inventory management?

A) Inventory system which stockpiles raw materials to protect against supply interruptions
B) Production system that focuses on delivering materials and goods in exactly the right quantity when needed
C) Inventory purchasing process that gains purchase discounts by buying in large quantities
D) Production system that stores surplus goods at each stage of manufacture

Question 18

Management is accountable to various government bodies in which of the following ways?

A) Providing a return on the stakeholders' investment
B) Obeying laws and regulations, and paying taxes
C) Making timely payments to creditors
D) Making timely payments to vendors

Question 19

Which of the following statements about financial accounting is CORRECT?

A) Financial accounting is forward-looking.
B) Financial accounting is focused on planning and controlling operations.
C) Financial accounting is focused on detailed reports on parts of the company.
D) Financial accounting is oriented towards helping investors make decisions.

Question 20

What is the name given to software systems that can integrate all of a company's worldwide functions,departments and data into a single system?

A) E-commerce
B) Total quality management (TQM)
C) Just-in-time inventory management (JIT)
D) Enterprise resource planning (ERP)

Question 21

Fuchsia Ltd provides automobile services in the local community.The company provides the following information for the month of March:
$$\begin{array} { | l | l | } \hline \text { Building rent expense } & \$ 5000 \\\hline \text { Depreciation expense -equipment } & 1400 \\\hline \text { Supplies expense } & 7500 \\\hline \text { Electricity and gas expense } & 2350 \\\hline\end{array}$$
Fuchsia provided services to 1500 clients in the month of March and generated $22,500 as revenue.
How much is the cost per service?

A) $3.33
B) $9.57
C) $10.83
D) $5.83

Question 22

Kentucky purchases and sells widgets.The following information summarises Kentucky's operating activities for 2017:
$$\begin{array} { | l | l | } \hline \text { Selling and administrative expenses } & \$ 4600 \\\hline \text { Purchases } & 159,000 \\\hline \text { Sales revenue } & 785,000 \\\hline \text { Inventory, 1 January 2017 } & 33,600 \\\hline \text { Inventory, 31 December 2017 } & 76,800 \\\hline\end{array}$$
If the company sold 7700 units of widgets during 2017,how much is the cost for one widget?

A) $20.65
B) $25.01
C) $14.34
D) $15.04

Question 23

Crystal Ltd is a retailer of stone ornaments.The company sold 15,200 units in 2017.The company has provided the following information:
$$\begin{array} { | l | l | } \hline \text { Sales revenue } & \$ 554,000 \\\hline \text { Purchases (excluding freight in) } & 290,000 \\\hline \text { Selling and administrative expenses } & 68,000 \\\hline \text { Freight in } & 14,000 \\\hline \text { Beginning inventory } & 49,000 \\\hline \text { Ending inventory } & 53,400 \\\hline\end{array}$$
What is the cost per unit sold?

A) $23.22
B) $20.00
C) $16.49
D) $19.71

Question 24

Which of the following BEST describes the value chain?

A) The minimising of inventory levels to reduce storage, insurance and finance costs
B) All activities that contribute to the continuous improvement of business operations
C) A management information system which tracks the costs of products through the manufacturing process
D) The whole sequence of activities that adds value to a company's products and services

Question 25

Some of the costs of a service company are called period costs and others are non-service costs.

Question 26

Which of the following would be an inventoriable product cost?

A) the cost of purchasing the inventory from the supplier
B) the cost of shipping the inventory to a customer
C) inventory storage costs
D) advertising costs

Question 27

Star Health Ltd is a fitness centre in Sydney City.In October,the company earned $556,000 in revenues and incurred the following operating costs from 400 customers:
$$\begin{array} { | l | l | } \hline \text { Manager's salary } & \$ 51,000 \\\hline \text { Gym rent } & 15,000 \\\hline \text { Depreciation expense -equipment } & 16,800 \\\hline \text { Office supplies } & 24,000 \\\hline \text { Electricity and gas expense } & 60,000 \\\hline \text { Trainer's salary } & 21,000 \\\hline\end{array}$$
How much is the unit cost per customer service?

A) $247.50
B) $469.50
C) $180.00
D) $1390.00

Question 28

Crystal Ltd is a retailer of stone ornaments.The company sold 8000 units in 2017.The company has provided the following information:
$$\begin{array} { | l | l | } \hline \text { Sales revenue } & \$ 598,000 \\\hline \text { Purchases (excluding freight in) } & 300,000 \\\hline \text { Selling and administrative expenses } & 67,000 \\\hline \text { Freight in } & 14,000 \\\hline \text { Beginning inventory } & 45,000 \\\hline \text { Ending inventory } & 42,000 \\\hline\end{array}$$
What is the cost of goods available for sale for 2017?

A) $317,000
B) $331,000
C) $359,000
D) $345,000

Question 29

Which of the following formulas represents cost of sales for a retailing business?

A) Beginning inventory + purchases and freight in - ending inventory = cost of sales
B) Purchases and freight in - ending inventory = cost of sales
C) Ending inventory + purchases and freight in - beginning inventory = cost of sales
D) Beginning inventory - ending inventory = cost of sales

Question 30

Which of the following is TRUE for a service company?

A) Expenses are all period costs.
B) Income statement includes gross profit.
C) Expenses are all inventoriable product costs.
D) Balance sheet includes finished goods inventory.

Question 31

Nurix Ltd is a business consulting firm.During the month of February,Nurix earned $56,400 of revenues by providing services to 46 clients.Operating expenses for February were $11,500 and non-operating expenses were $4000.
What is the cost per service?

A) $336.96
B) $889.13
C) $86.96
D) $250.00

Question 32

Which of the following could be found on the income statement of a service company?

A) Cost of goods manufactured
B) Manufacturing overhead
C) Rent expense
D) Cost of sales

Question 33

Samson Ltd reported the following information for the year 2017:
$$\begin{array} { | l | l | } \hline \text { Oervice revenue } & \$ 45,000 \\\hline \text { Operating expenses } & 24,000 \\\hline \text { Net profit } & 21,000 \\\hline \text { Number of services provided for the year } & 11,500 \\\hline\end{array}$$
How much was the unit cost per service?

A) $2.09
B) $6.00
C) $3.91
D) $1.83

Question 34

Crabapples Ltd purchases and sells dry fruit boxes.The following information summarises its operating activities for 2017:
$$\begin{array} { | l | l | } \hline \text { Selling expenses } & \$ 9300 \\\hline \text { Inventory on 31 December 2017 } & 33,000 \\\hline \text { Inventory on 1 January 2017 } & 46,300 \\\hline \text { Purchases of inventory } & 33,000 \\\hline \text { Rent for store } & 12,800 \\\hline \text { Sales commissions } & 7400 \\\hline \text { Sales revenue } & 162,000 \\\hline\end{array}$$
If Crabapples sold 3000 boxes of dry fruit during the year,what is the cost per box of dry fruit?

A) $11.00
B) $32.10
C) $43.10
D) $54.00

Question 35

Crystal Ltd is a retailer of stone ornaments.The company sold 8000 units in 2017.The company has provided the following information:
$$\begin{array} { | l | l | } \hline \text { Sales revenue } & \$ 593,000 \\\hline \text { Purchases (excluding freight in) } & 302,000 \\\hline \text { Selling and administrative expenses } & 66,000 \\\hline \text { Freight in } & 13,000 \\\hline \text { Beginning inventory } & 44,000 \\\hline \text { Ending inventory } & 42,000 \\\hline\end{array}$$
What is the operating profit for 2017?

A) $210,000
B) $276,000
C) $317,000
D) $527,000

Question 36

Increased global competition has resulted in many companies moving their operations to other countries to be closer to new markets.

Question 37

During the past century,many developed economies have shifted their focus from a service economy to a manufacturing economy.

Question 38

Service company managers may calculate the service unit cost to set their prices.

Question 39

Which of the following is a characteristic of a service company?

A) It has a single category of inventory.
B) It does not have tangible products intended for sale.
C) It makes a product.
D) It transforms raw materials into finished goods.

Question 40

Retailing businesses resell goods which they purchase from a producer.

Question 41

Which of the following are period costs?

A) Costs related to the manufacture of products
B) Current liabilities on the balance sheet
C) Costs incurred and expensed during the accounting period
D) Current assets on the balance sheet

Question 42

Which of the following applies to the raw materials used by a manufacturing company?

A) Work in process inventory
B) Inventory
C) Finished goods inventory
D) Materials inventory

Question 43

Which of the following describes the cost of goods manufactured?

A) The cost of the goods that were sold during the period
B) The total cost of all goods that were completed or partially completed during the period
C) The total costs in inventory at the end of the period
D) The cost of those goods which were completed during the period

Question 44

Which of the following is an example of a period cost?

A) Indirect materials
B) Property rates for the factory
C) Depreciation on factory equipment
D) Advertising expense

Question 45

Which of the following costs do NOT go directly into the work in process account?

A) Factory cleaning costs
B) The purchase of raw materials
C) Factory overhead
D) Indirect labour

Question 46

Accounting standards require companies to treat inventoriable product costs as an asset until the product is sold.

Question 47

Which of the following is NOT an inventoriable product cost?

A) Depreciation of corporate headquarters
B) Depreciation of factory equipment
C) Indirect labour
D) Indirect materials

Question 48

Which of the following applies to goods that are partially completed?

A) Work in process inventory
B) Finished goods inventory
C) Materials inventory
D) Inventory

Question 49

Inventoriable product costs are expensed in the period in which they are incurred.

Question 50

Which of the following applies to goods that are produced by a manufacturing company and ready to sell?

A) Work in process inventory
B) Materials inventory
C) Inventory
D) Finished goods inventory

Question 51

Which of the following is an example of direct labour?

A) Wages of factory security guard
B) Wages of assembly line personnel
C) Salary of production manager
D) Salary of vice president of production

Question 52

Which of the following is NOT a part of manufacturing overhead?

A) Indirect labour
B) Indirect materials
C) Depreciation on delivery vehicles
D) Factory insurance

Question 53

Which of the following costs would appear on the income statements for both a retailer and a manufacturer?

A) Electricity and gas
B) Direct labour
C) Cost of goods manufactured
D) Direct materials

Question 54

Period costs are costs that are expensed in the period in which they are incurred.

Question 55

Which of the following describes the term cost object?

A) Any type of cost which is incurred to produce a finished product
B) Any cost which is treated as a period expense
C) Anything which requires a detailed record of its component costs to be kept
D) An object which costs money to purchase

Question 56

Period costs do NOT include which of the following?

A) Factory cleaning costs
B) Sales commissions
C) Insurance on delivery vehicles
D) Advertising costs

Question 57

Which of the following would probably be considered an indirect material cost in a bakery?

A) Flour
B) Spices
C) Milk
D) Eggs

Question 58

Inventoriable product costs only include the costs to get the inventory in the warehouse.

Question 59

All of the following are examples of manufacturing overhead,EXCEPT for:

A) electricity and gas incurred in the factory.
B) indirect materials.
C) wages of assembly line workers.
D) insurance on factory equipment.

Question 60

Manufacturing overhead includes which of the following?

A) Direct materials and direct labour
B) Indirect labour and indirect materials
C) Delivery costs to ship goods to customers
D) Salaries of salesmen

Question 61

A company used $34,000 of direct materials,incurred $73,000 in direct labour cost and $114,000 in manufacturing overhead costs during the period. If beginning and ending work in process inventories were $27,000 and $21,500 respectively,what is the cost of goods manufactured?

A) $215,500
B) $221,000
C) $226,500
D) $248,000

Question 62

Which of the following properly describes the accounting for advertising costs?

A) Advertising costs are period costs and are expensed when the manufactured product is sold.
B) Advertising costs are inventoriable product costs and are expensed as incurred.
C) Advertising costs are period costs and are expensed as incurred.
D) Advertising costs are inventoriable product costs and are expensed when the manufactured product is sold.

Question 63

Which of the following properly describes the accounting for indirect labour costs?

A) Indirect labour costs are inventoriable product costs and are expensed as incurred.
B) Indirect labour costs are period costs and are expensed as incurred.
C) Indirect labour costs are period costs and are expensed when the manufactured product is sold.
D) Indirect labour costs are inventoriable product costs and are expensed when the manufactured product is sold.

Question 64

Fireox Company's selected cost data for 2017 are shown below:
$$\begin{array} { | l | l | } \hline \text { Work in process inventory, } 1 \text { Jan } 2017 & \$ 5880 \\\hline \text { Direct materials used } & 105,000 \\\hline \text { Work in process inventory, } 31 \text { Dec } 2017 & 2780 \\\hline \text { Cost of goods manufactured } & 193,300 \\\hline\end{array}$$
Assuming manufacturing overhead costs of $27,810,what is the amount of direct labour incurred by Fireox Company in 2017?

A) $57,390
B) $190,200
C) $60,490
D) 883$132,810

Question 65

Jasper Ltd reports the following cost information for March:
$$\begin{array} { | l | l | } \hline \text { Cost of goods manufactured } & \$ 74,000 \\\hline \text { Manufacturing overhead } & 19,000 \\\hline \text { Finished goods inventory, 1 March } & 6000 \\\hline \text { Finished goods inventory, 31 March } & 3000 \\\hline \text { Work in process inventory, 1 March } & 9620 \\\hline \text { Work in process inventory, 31 March } & 1180 \\\hline \text { Direct materials used } & 25,250 \\\hline\end{array}$$
What is the amount of direct labour incurred by Jasper in March?

A) $65,560
B) $74,000
C) $21,310
D) $6250

Question 66

The following information was obtained from Fizz Company:
$$\begin{array} { | l | l | } \hline \text { Advertising costs } & \$ 9100 \\\hline \text { Indirect labour } & 3600 \\\hline \text { CEO's salary } & 61,000 \\\hline \text { Direct labour } & 40,000 \\\hline \text { Indirect materials } & 5000 \\\hline \text { Direct materials used } & 60,000 \\\hline \text { Factory electricity and gas } & 520 \\\hline \text { Factory janitorial costs } & 1800 \\\hline \text { Manufacturing equipment depreciation } & 1200 \\\hline \text { Delivery vehicle depreciation } & 1700 \\\hline \text { Administrative wages and salaries } & 20,000 \\\hline\end{array}$$
Calculate Fizz's total product costs.

A) $110,600
B) $114,120
C) $100,000
D) $91,800

Question 67

Kyanite Company reports costs for 2017 as follows:
$$\begin{array} { | l | l | } \hline \text { Raw materials } & \$ 56,500 \\\hline \text { Wages to line workers } & 27,000 \\\hline \text { Office rent } & 35,000 \\\hline \text { Indirect materials } & 66,000 \\\hline\end{array}$$
How much are the total product costs for 2017?

A) $149,500
B) $66,000
C) $184,500
D) $83,500

Question 68

Fireox Company's selected cost data for 2017 are shown below:
$$\begin{array} { | l | l | } \hline \text { Cost of goods manufactured } & \$ 147,700 \\\hline \text { Work in process inventory, } 1 \text { Jan } 2017 & 19,000 \\\hline \text { Work in process inventory, 31 Dec } 2017 & 20,500 \\\hline \text { Direct materials used } & 18,100 \\\hline\end{array}$$
What is the total of manufacturing costs incurred by Fireox Company in 2017?

A) $149,200
B) $146,200
C) $37,100
D) $21,400

Question 69

The following information was obtained from Fizz Company:
$$\begin{array} { | l | l | } \hline \text { Advertising costs } & \$ 10,800 \\\hline \text { Indirect labour } & 7000 \\\hline \text { CEO's salary } & 47,000 \\\hline \text { Direct labour } & 60,000 \\\hline \text { Indirect materials } & 6500 \\\hline \text { Direct materials used } & 41,000 \\\hline \text { Factory utilities } & 540 \\\hline \text { Factory janitorial costs } & 3000 \\\hline \text { Manufacturing equipment depreciation } & 2000 \\\hline \text { Delivery vehicle depreciation } & 1120 \\\hline \text { Administrative wages and salaries } & 31,900 \\\hline\end{array}$$
How much were Fizz's period costs?

A) $89,700
B) $90,820
C) $11,920
D) $120,040

Question 70

Kyanite Company,a retailer,reports costs for 2017 as follows:
$$\begin{array} { | l | l | } \hline \text { Raw materials } & \$ 62,500 \\\hline \text { Wages to line workers } & 73,500 \\\hline \text { Office rent } & 24,500 \\\hline \text { Indirect materials } & 64,500 \\\hline\end{array}$$
How much are the total period costs of Kyanite?

A) $24,500
B) $73,500
C) $64,500
D) $62,500

Question 71

Which of the following is NOT a period cost?

A) CEO's salary
B) Delivery van depreciation
C) Sales commissions
D) Factory cleaning costs

Question 72

Which of the following properly describes the accounting for corporate headquarters' property rates?

A) The property rates are inventoriable product costs and are expensed as incurred.
B) The property rates are period costs and are expensed when the manufactured product is sold.
C) The property rates are period costs and are expensed as incurred.
D) The property rates are inventoriable product costs and are expensed when the manufactured product is sold.

Question 73

Given the following information,determine the cost of sales.
$$\begin{array} { | l | l | } \hline \text { Direct labour incurred } & \$ 61,000 \\\hline \text { Manufacturing overhead incurred } & 177,500 \\\hline \text { Direct materials used } & 151,000 \\\hline \text { Finished goods inventory, 1/1/2017 } & 198,000 \\\hline \text { Finished goods inventory, 31/12/2017 } & 221,000 \\\hline \text { Work in process inventory, } 1 / 1 / 2017 & 26,000 \\\hline \text { Work in process inventory, 31/12/2017 } & 109,000 \\\hline\end{array}$$

A) $485,500
B) $419,000
C) $353,500
D) $376,500

Question 74

Damsel Ltd is a large manufacturer of car tyres.Damsel has provided the following information:
$$\begin{array} { | l | l | } \hline \text { Sales revenue } & \$ 50,000 \\\hline \text { Beginning finished goods inventory } & 19,000 \\\hline \text { Cost of sales } & 36,000 \\\hline \text { Cost of goods manufactured } & 45,500 \\\hline\end{array}$$
Calculate the amount of ending finished goods inventory reported in Damsel's balance sheet.

A) $64,500
B) $9500
C) $4500
D) $28,500

Question 75

Given the following information,determine the cost of goods manufactured.
$$\begin{array} { | l | l | } \hline \text { Direct labour incurred } & \$ 61,000 \\\hline \text { Manufacturing overhead incurred } & 175,500 \\\hline \text { Direct materials used } & 154,000 \\\hline \text { Finished goods inventory, 1/1/2017 } & 199,000 \\\hline \text { Finished goods inventory, 31/12/2017 } & 222,000 \\\hline \text { Work in process inventory, 1/1/2017 } & 26,000 \\\hline \text { Work in process inventory, 31/12/2017 } & 109,000 \\\hline\end{array}$$

A) $281,500
B) $390,500
C) $377,500
D) $312,000

Question 76

Crystal Ltd is a retailer of stone ornaments.It sold 15 000 units in 2017.The company has provided the following information:
$$\begin{array} { | l | l | } \hline \text { Sales revenue } & \$ 535,000 \\\hline \text { Purchases (excluding freight in) } & 305,500 \\\hline \text { Selling and administrative expenses } & 37,000 \\\hline \text { Freight in } & 15,500 \\\hline \text { Beginning inventory } & 43,500 \\\hline \text { Ending inventory } & 59,500 \\\hline\end{array}$$
How much is the gross profit for 2017?

A) $305,000
B) $230,000
C) $229,500
D) $267,000

Question 77

Which of the following properly describes the accounting for factory depreciation?

A) Factory depreciation is an inventoriable product cost and is expensed as incurred.
B) Factory depreciation is a period cost and is expensed as incurred.
C) Factory depreciation is a period cost and is expensed when the manufactured product is sold.
D) Factory depreciation is an inventoriable product cost and is expensed when the manufactured product is sold.

Question 78

Jasper Ltd reports the following cost information for March:
$$\begin{array} { | l | l | } \hline \text { Cost of goods manufactured } & \$ 74,800 \\\hline \text { Manufacturing overhead } & 19,000 \\\hline \text { Finished goods inventory, 1 March } & 4500 \\\hline \text { Finished goods inventory, 31 March } & 2800 \\\hline \text { Work in process inventory, 1 March } & 9300 \\\hline \text { Work in process inventory, 31 March } & 1200 \\\hline \text { Direct materials used } & 25,100 \\\hline\end{array}$$
What is the cost of sales for March?

A) $76,500
B) $79,300
C) $73,100
D) $3200

Question 79

The cost of sales for Frye Manufacturing in 2017 was $213,000.The 1 January 2017 finished goods inventory balance was $30,800 and the 31 December 2017 finished goods inventory balance was $24,500.Calculate the cost of goods manufactured during 2017.

A) $6300
B) $55,300
C) $237,500
D) $206,700

Question 80

The following information relates to Webster Ltd:
$$\begin{array} { | l | l | } \hline \text { Advertising costs } & \$ 13,200 \\\hline \text { Sales salary } & 13,400 \\\hline \text { Sales revenue } & 470,000 \\\hline \text { President's salary } & 60,000 \\\hline \text { Office rent } & 53,500 \\\hline \text { Manufacturing equipment depreciation } & 3000 \\\hline \text { Indirect materials } & 3600 \\\hline \text { Indirect labour } & 12,800 \\\hline \text { Factory repair and maintenance } & 840 \\\hline \text { Direct materials } & 30,870 \\\hline \text { Direct labour } & 31,400 \\\hline \text { Delivery vehicle depreciation } & 910 \\\hline \text { Administrative salaries } & 30,100 \\\hline\end{array}$$
How much was Webster's manufacturing overhead?

A) $22,240
B) $62,270
C) $21,400
D) $25,240