Use the following information to answer the question below

Cost of raw materials available------ 32,000

Manufacturing wages -----10,000

Factory expenses-----5,000

Royalty-------3,000

Factory rent ------2,000

Depreciation of plant and machinery---- 5,000

closing stock of raw materials-------- 3,000

Factory overhead cost is

  • A $25,000
  • B $415,000
  • C $12,000
  • D $7,000

The correct answer is C. $12,000

No explanation given
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