Little League Baseball Manufacturer
The Little League Baseball Manufacturer purchases materials for the production of customized little league baseball bats,hires workers to convert the materials to customized finished baseball bats,and then offers the customized baseball bats for sale to little league teams and the general public.
Refer to Little League Baseball Manufacturer.
Manufacturing costs,such as the wages for janitorial staff to sweep and mop the floors,that are not easily traced to a specific customized baseball bat fall into which of the following categories?

Question

Quizplus · Accepted Answer

Manufacturing overhead costs are indirect costs that cannot be directly traced to a specific product produced. The wages for janitorial staff to sweep and mop the floors are an example of manufacturing overhead costs. Direct material costs are costs related to the materials used to create a specific product, and direct labor costs are costs related to the workers who directly produce the product. Opportunity costs are the potential benefit that is given up when choosing an alternative course of action.