A company that manufactures furniture is establishing its budget for the upcoming year. All of the following items would appear in its overhead budget except for the:
A) Overtime paid to the workers who perform production scheduling.
B) Cost of glue used to secure the attachment of the legs to the tables.
C) Fringe benefits paid to the production supervisor.
D) Freight charges paid for the delivery of raw materials to the company.

Question

Quizplus · Accepted Answer

Freight charges paid for the delivery of raw materials to the company are not an overhead cost, but a direct cost.

A Company That Manufactures Furniture Is Establishing Its Budget for the Upcoming