BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of these is not an example of a Factory Overhead?
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Depreciation of Factory Machinery
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Factory Rates
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Factory Insurance
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Direct Expenses
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Explanation:
Detailed explanation-1: -Salary is not factory overhead.
Detailed explanation-2: -Manufacturing expenses Was this answer helpful?
Detailed explanation-3: -Manufacturing overhead costs are called indirect costs because it’s hard to trace them to each product. These costs are applied to the final product based on a pre-determined overhead absorption rate.
Detailed explanation-4: -Examples of manufacturing overhead Electricity or gas used in a factory. Other utilities, such as water and trash service. Unforeseen repairs or maintenance. Employees who perform repairs or maintenance.
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