Which one of the following costs would be included in manufacturing overhead of a lawn mower manufacturer?
A)the cost of the wheels
B)the cost of the fuel lines that run from the motor to the gas tank
C)depreciation on the testing equipment
D)the wages earned by motor assemblers

Question

Quizplus · Accepted Answer

Manufacturing overhead includes indirect costs that cannot be directly traced to a specific unit of production. Depreciation on testing equipment is an indirect cost that benefits the production process as a whole, making it a typical example of manufacturing overhead. The cost of the wheels, the fuel lines, and the wages of motor assemblers are all direct costs that can be directly traced to a specific unit of production and would therefore be included in the total cost of the lawn mower.

Which One of the Following Costs Would Be Included in Manufacturing