Asked by
Maria Gonzalez
on Nov 13, 2024
Verified
Which one of the following would not be classified as manufacturing overhead?
A) Indirect labor
B) Direct materials
C) Insurance on factory building
D) Indirect materials
Manufacturing Overhead
Indirect factory-related costs that are incurred when a product is manufactured, including costs such as utilities, maintenance, and salaried staff.
Direct Materials
Materials that can be directly linked to the production of a product.
Indirect Labor
Labor costs associated with employees who do not work directly on the production of goods or services but support the production environment, such as maintenance staff and supervisors.
- Outline the components of product costs, featuring direct materials, direct labor, and manufacturing overhead.
- Distinguish between manufacturing costs (direct materials, direct labor, and overhead) and non-manufacturing costs (period costs).
Verified Answer
CL
Learning Objectives
- Outline the components of product costs, featuring direct materials, direct labor, and manufacturing overhead.
- Distinguish between manufacturing costs (direct materials, direct labor, and overhead) and non-manufacturing costs (period costs).