Indirect Materials and Indirect Labor Are ________ for a Manufactured

question 253

Multiple Choice

Indirect materials and indirect labor are ________ for a manufactured product.

• A)overhead and period costs
• B)operating and period costs
• C)overhead and product costs
• D)operating and product costs

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Definitions:

Actual Direct Material

The raw materials physically used in the manufacturing process, measured against the planned or standard materials cost.

Actual Manufacturing Overhead

The real costs incurred during production that are above direct labor and materials, including utilities, depreciation, and maintenance.

Employee Time Ticket

A record that tracks the amount of time an employee spends on various tasks, used for costing, payroll, or billing purposes.

Overhead Rate

A measure used to allocate manufacturing overhead costs to units of product based on a predetermined base.