Manufacturing overhead is best described as
A)costs that cannot be traced directly to specific jobs or processes.
B)costs that are economically feasible to trace directly to specific jobs or processes.
C)costs that are not economically feasible to trace directly to specific jobs or processes.
D)costs that management has decided not to trace directly to specific jobs or processes.

Question

Quizplus · Accepted Answer

Manufacturing overhead costs include those indirect costs that are not economically feasible or practical to trace directly to specific jobs or processes. Examples of manufacturing overhead costs include rent, utilities, maintenance, depreciation, and taxes on manufacturing facilities and equipment. These costs are typically allocated to products using predetermined rates based on a measure of activity, such as machine hours or direct labor dollars.

Manufacturing Overhead Is Best Described as