Budgeted manufacturing overhead costs include all types of factory expenses EXCEPT:
A)indirect labour such as the salary of the plant supervisor.
B)variable items such as plant supplies.
C)fixed items such as depreciation of manufacturing machinery.
D)direct labour and direct materials.

Question

Quizplus · Accepted Answer

Budgeted manufacturing overhead costs do not include direct labour and direct materials as these costs are already included in the calculation of direct costs. The other options (A, B, and C) represent various types of indirect factory expenses that would be included in the budgeted manufacturing overhead costs.

Budgeted Manufacturing Overhead Costs Include All Types of Factory Expenses