Select the Appropriate Classification of the Items Listed Below

question 100

Multiple Choice

Select the appropriate classification of the items listed below.
-Chief of surgery's salary at a hospital

• A)selling expense
• B)administrative expense
• C)direct materials
• D)direct labor
• E)overhead

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, including maintenance, utilities, and salaries of maintenance workers, not directly tied to a specific product.

Job Cost

The total cost associated with completing a specific job, including materials, labor, and overhead.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or job orders, calculated before the period begins based on estimated costs and activity levels.

Machine-Hour

A unit of measure representing the operation of a machine for one hour.