Asked by Bailey White on Jul 20, 2024
Verified
Rent expense on factory building
A) Direct materials
B) Selling and administrative expense
C) Factory overhead
D) Direct labor
Factory Building
A type of commercial real estate designed for manufacturing processes, assembly, and storing materials and goods used and produced by industrial and manufacturing operations.
Rent Expense
The cost incurred by a company for using or occupying property or equipment for business operations.
- Pinpoint the expenses for direct materials, direct labor, and factory overhead.
Verified Answer
KN
Katie NguyenJul 23, 2024
Final Answer :
C
Explanation :
Rent expense on a factory building is a cost that falls under the category of factory overhead, which includes all indirect costs of manufacturing such as rent, utilities, and depreciation.
Learning Objectives
- Pinpoint the expenses for direct materials, direct labor, and factory overhead.