Manufacturing overhead may include depreciation on the factory plant and equipment, utilities to run the plant, property taxes and insurance on the plant, and salaries of plant janitors.

Question

Quizplus · Accepted Answer

Manufacturing overhead refers to all indirect costs incurred in the production process, which includes depreciation on the factory plant and equipment, utilities to run the plant, property taxes and insurance on the plant, and salaries of plant janitors, among other expenses.

Manufacturing Overhead May Include Depreciation on the Factory Plant and Equipment