As plant controller, you are trying to determine the costs over which you have the most control on a day-to-day basis.Your goal is to achieve better profitability.The plant operations manager suggests that overhead is the easiest area to directly reduce costs.Which of the following items would be classified as manufacturing overhead?
A)factory janitor
B)general corporate liability insurance
C)cost of landscaping the corporate office
D)the western division's vice president's salary

Question

Quizplus · Accepted Answer

A factory janitor is a direct labor cost classified under manufacturing overhead. General corporate liability insurance is an indirect cost and is not classified as manufacturing overhead. The cost of landscaping the corporate office is a period cost and not a manufacturing overhead cost. The western division's vice president's salary is an administrative cost and is not classified as manufacturing overhead.

As Plant Controller, You Are Trying to Determine the Costs