Which of the following would generally be considered a fixed factory overhead cost?
Straight-line Factory Units-of-production
depreciation insurance depreciation
A)no no no
B)yes no yes
C)yes yes no
D)no yes no

Question

Which of the following would generally be considered a fixed factory overhead cost?
Straight-line     Factory       Units-of-production
depreciation     insurance     depreciation
A)no                     no                  no
B)yes                    no                 yes
C)yes                    yes                no
D)no                      yes               no

Quizplus · Accepted Answer

Fixed factory overhead costs are costs that do not vary with changes in production level and include items such as rent, property taxes, and equipment depreciation. In this case, choice C indicates that there are both fixed factory overhead costs (yes) and variable factory overhead costs (no and yes), making it the best choice.

Which of the Following Would Generally Be Considered a Fixed