ECONOMICS

Detailed explanation-1: -The manufacturing overhead budget contains all manufacturing costs other than direct materials and direct labor. The information in this budget becomes part of the cost of goods sold line item in the master budget.

Detailed explanation-2: -Together, the direct materials, direct labor, and manufacturing overhead are referred to as manufacturing costs.

Detailed explanation-3: -Direct Costs, Indirect Costs, & Manufacturing Overhead : Example Question #5. Explanation: Conversion costs consist of direct labor and overhead. Thus, conversion costs include all product costs except direct materials.

Detailed explanation-4: -Production costs refer to all of the direct and indirect costs businesses face from manufacturing a product or providing a service. Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead.

Detailed explanation-5: -Production cost factors typically include labor, raw materials, equipment, rent, and other supplies or overhead.