ECONOMICS

Detailed explanation-1: -Ans(1) is a. Sales Commission Explanation: Manufacturing overhead cost consists of all indirect cost incurred while manufacturing that is not directly traceable to production.

Detailed explanation-2: -Answer and Explanation: The correct option is (d) Depreciation on delivery vehicles. Delivery vehicles are related to sales and not manufacturing, hence cost on delivery vehicles would be classified as selling and administrative expenses and not as manufacturing costs.

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: -Answer and Explanation: The correct answer is that a) cost of goods sold is not a manufacturing cost category. Adding up the direct materials, direct labor, and manufacturing overhead costs gives us the total manufacturing costs for the year.

Detailed explanation-5: -Answer and Explanation: Manufacturing overhead is indirect factory related costs associated with making products. Direct materials is a direct cost and therefore not associated with manufacturing overhead.