Identify the cost below most likely to be classified as manufacturing overhead.
A)Production workers' pay.
B)Raw materials used in production.
C)Insurance cost.
D)Research and development cost.

Question

Quizplus · Accepted Answer

Manufacturing overhead includes indirect costs that are incurred in the manufacturing process but are not directly tied to the production of a specific product. Insurance cost is an indirect cost that is incurred for the benefit of all products being produced and is therefore likely to be classified as manufacturing overhead. Production workers' pay and raw materials used in production are direct costs that can be traced to specific products, and research and development cost is not directly related to the production process.

Identify the Cost Below Most Likely to Be Classified as Manufacturing