Which of the following may not be a factory overhead cost?
A) materials used directly in the manufacturing process of the product
B) insurance on factory equipment
C) salaries of production supervisors
D) property tax on factory building

Question

Quizplus · Accepted Answer

Materials used directly in the manufacturing process are considered direct costs of producing the product and not factory overhead costs. Factory overhead costs are other indirect costs associated with the manufacturing process such as insurance, salaries, property tax, and utilities.

Which of the Following May Not Be a Factory Overhead