Manufacturing overhead includes which of the following?
A) Direct materials and direct labour
B) Indirect labour and indirect materials
C) Delivery costs to ship goods to customers
D) Salaries of salesmen

Question

Quizplus · Accepted Answer

Manufacturing overhead includes indirect costs that cannot be directly traced to the production of specific units, such as indirect materials (materials used in the production process that are not part of the final product) and indirect labour (labour costs of employees not directly involved in the production process, such as supervisors and maintenance workers). Delivery costs and salaries of salesmen are not considered manufacturing overhead. Direct materials and direct labour are part of the product cost and therefore are not considered overhead.

Manufacturing Overhead Includes Which of the Following