Asked by Nicolette keatia on May 25, 2024
Verified
Which of the following should NOT be included as part of manufacturing overhead at a company that makes office furniture?
A) Manufacturing equipment depreciation.
B) Sheet steel in a file cabinet made by the company.
C) Idle time for direct labour.
D) Taxes on a factory building.
Manufacturing Equipment
Machinery and tools that are used in the process of producing goods.
Manufacturing Overhead
The indirect costs associated with manufacturing that are not directly tied to the production of specific goods, such as maintenance, utilities, and salaries of supervisors.
Sheet Steel
Thin, flat steel that is made in sheets, used in a wide range of industries including construction and manufacturing.
- Understand the role of manufacturing overhead in product costs.
Verified Answer
Learning Objectives
- Understand the role of manufacturing overhead in product costs.
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