Which of the following would most likely NOT be included as manufacturing overhead in a furniture factory?

A) The cost of the glue in a chair.
B) The amount paid to the individual who stains a chair.
C) The workman's compensation insurance of the supervisor who oversees production.
D) The factory utilities of the department in which production takes place.

Question

Carmen Del Orbe · Accepted Answer

Final Answer : B, Explanation :  The amount paid to the individual who stains a chair would likely be considered direct labor, as it can be directly traced to the production of the specific chair. Manufacturing overhead typically includes costs that cannot be easily traced to a specific product, such as insurance and utilities. The cost of glue may be considered indirect material and would be included in manufacturing overhead, as would the workman's compensation insurance of the supervisor overseeing production and the factory utilities.

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