Which of the Following Costs Is Not Included in Factory

question 110

Multiple Choice

Which of the following costs is not included in factory overhead?

• A)Payroll taxes on the wages of factory supervisors.
• B)Indirect labor.
• C)Depreciation of manufacturing equipment.
• D)Manufacturing supplies used.
• E)Direct materials.

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Definitions:

Annual Overhead Costs

The total of all expenses that are not directly tied to the production of goods or services within one year.

Overhead Costs

Expenses required to run a business that are not directly related to the production of goods or services, such as rent, utilities, and administrative salaries.

Direct Labor Cost

The expense associated with the work performed by employees directly involved in the manufacturing process of products.

Manufacturing Overhead

All manufacturing costs that are not directly associated with the production of goods, including costs related to indirect labor, materials, and facility.