Which expense is included in manufacturing overhead?
A) property taxes on the factory
B) utility costs at the head office
C) advertising and marketing costs
D) computers used at the head office

Question

Quizplus · Accepted Answer

Property taxes on the factory are a direct expense related to the manufacturing process and are therefore included in manufacturing overhead.

Answer: B, C, D 
 Utility costs at the head office, advertising and marketing costs, and computers used at the head office are not directly related to the manufacturing process and are therefore not included in manufacturing overhead. These expenses would typically be classified as selling, general, and administrative expenses (SG&A).

Which Expense Is Included in Manufacturing Overhead