Factory Overhead Includes

question 223

Multiple Choice

Factory overhead includes

• A) factory rent and direct labor
• B) direct materials and direct labor
• C) indirect materials and direct materials
• D) indirect labor and indirect materials

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Definitions:

Work in Process

Inventory that includes partially completed goods that are in the process of being manufactured but are not yet finished products.

Finished Goods

Products that have completed the manufacturing process and are ready for sale.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Machine-hours

A measure of the amount of time machines are operated, used in allocating overhead costs.