Manufacturing overhead consists of all manufacturing costs that are not economically feasible to trace directly to specific jobs or processes.Which of the costs below would not be considered an overhead cost?
A)utilities
B)rent
C)earnings of factory production employees
D)salaries of factory production supervisors

Question

Quizplus · Accepted Answer

The earnings of factory production employees can be traced directly to specific jobs or processes as these employees are responsible for the production activities. Hence, it would not be considered an overhead cost. Utilities and rent would be considered overhead costs as they cannot be easily traced to specific jobs or processes. Similarly, salaries of factory production supervisors would also be considered overhead costs as they are not directly involved in the production activities and their salaries cannot be easily traced to specific jobs or processes.

Manufacturing Overhead Consists of All Manufacturing Costs That Are Not