\(\begin{array}{c|c} & ₦ \\ \hline \text{Opening stock of raw materials} & 24,750\\ \text{Purchases of raw materials} & 129,640\\ \text{Carriage on raw materials} & 10,000\\ \text{Closing stock of raw materials} & 45,000 \\ \text{Factory supervisor's salary} & 30,000\\ \text{Wages of factory hands} & 50,000 \\ \text{Royalties paid}& 18,000\\ \text{Insurance of factories} & 62,000\\ \text{Work-in-progress(opening)} & 23,000 \\ \text{Raw material returned} & 12,200\end{array}\)

The total overhead expenses is

 

A.

₦142,000

B.

₦151,000

C.

₦110,000

D.

₦92,000

Correct answer is A

Overhead cost are cost not directly associated with the production of goods and services. It includes Payroll costs -- including salary, liability and employee insurance.

 

30000 + 50000 + 62000 = 142000