ECONOMICS

Detailed explanation-1: -Manufacturing overhead costs include indirect materials, indirect labor, and all other manufacturing costs. Depreciation on factory equipment, factory rent, factory insurance, factory property taxes, and factory utilities are all examples of manufacturing overhead costs.

Detailed explanation-2: -For manufacturing companies, rental expenses tied to production are part of factory overhead, while administrative office rent is part of operating expenses.

Detailed explanation-3: -Usually manufacturing overhead costs include depreciation of equipment, salary and wages paid to factory personnel and electricity used to operate the equipment.

Detailed explanation-4: -Manufacturing overhead does not include any of the selling or administrative functions of a business. Thus, the costs of such items as corporate salaries, audit and legal fees, and bad debts are not included in manufacturing overhead.

Detailed explanation-5: -The correct answer is d) indirect labor and indirect materials. The factory overhead is also kenned as manufacturing overhead, and it covers all the indirect costs, indirect labor, and indirect materials.