Manufacturing overhead includes:
A)costs that the firm cannot associate with particular products.
B)expenditures for factory utilities, property taxes, insurance, and depreciation on manufacturing plant and equipment.
C)expenditures for supervisors' salaries.
D)costs that jointly benefit all goods produced during the period, not any one particular item.
E)all of the above.

Question

Quizplus · Accepted Answer

Manufacturing overhead encompasses all indirect costs associated with the production process. This includes costs that cannot be directly traced to specific products (A), expenditures related to the operation and maintenance of the manufacturing facilities such as utilities, taxes, insurance, and depreciation (B), salaries for supervisory personnel who oversee the production process (C), and any costs that benefit all products produced, rather than specific items (D). Therefore, all of the options listed (A through D) are components of manufacturing overhead, making E the correct choice.

Manufacturing Overhead Includes