Which of the following costs would be included as part of factory overhead?
A)depreciation of plant equipment
B)direct labor
C)depreciation on the corporation's office building
D)paper used in the production of books

Question

Quizplus · Accepted Answer

Factory overhead includes all indirect costs incurred in the production process, such as rent, utilities, maintenance, and depreciation of plant equipment. Direct labor and materials are considered direct costs, and depreciation of a corporation's office building is not directly related to the production process and should be included in general and administrative expenses. The cost of paper used in the production of books is considered a direct material cost.

Which of the Following Costs Would Be Included as Part