An Example of a Production Overhead Would Be

question 25

Multiple Choice

An example of a production overhead would be:

• A) Direct labour
• B) Supervisory costs
• C) Direct materials
• D) None of the above

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Definitions:

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities required to produce them, emphasizing cost drivers.

Direct Labor-Hours

Direct labor-hours refer to the total number of hours worked by employees that are directly involved in the manufacturing process of a company's products.

Traditional Costing

A costing method that applies indirect costs to products based on a predetermined overhead rate, often not considering the actual activities that incur costs.

Overhead Assigned

The process of allocating manufacturing overhead costs to specific units of product based on a predetermined rate or method.