Which of the following costs is not included in factory overhead?
A) Manufacturing supplies used.
B) Indirect labor.
C) Depreciation of manufacturing equipment.
D) Direct materials.
E) Payroll taxes on the wages of factory supervisors.

Question

Quizplus · Accepted Answer

Direct materials are not included in factory overhead. Factory overhead includes indirect costs such as indirect labor, depreciation of manufacturing equipment, manufacturing supplies used, and payroll taxes on the wages of factory supervisors. Direct materials are considered a direct cost and are included in the cost of goods sold.

Which of the Following Costs Is Not Included in Factory