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Managerial Accounting

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Moderate

Cost Clarification for Cutlery

MGRACT-9LKBEN

Allied Industries manufactures cutlery for sale to wholesalers and retailers. The production department provided the following costs associated with the cutlery operation for June: training costs \$45,000, utility costs \$112,000, materials \$39,000, labor \$68,000, janitorial services \$53,000 and cleaning supplies \$26,000. What amount should be classified as indirect costs?

A

$236,000.00

B

$107,000

C

$157,000

D

$138,000