Which of the following is an example of overhead in a factory?
A) Wages of machine operators
B) Wages of factory maintenance personnel
C) Wages of administrators in the corporate office
D) Salaries of salespersons

Question

Quizplus · Accepted Answer

Overhead in a factory refers to the expenses incurred in running the factory that cannot be directly attributed to the production of a specific product or service. Wages of factory maintenance personnel fall under this category as they are necessary to keep the equipment and facilities in good condition, but do not directly contribute to the production process. Wages of machine operators, on the other hand, are considered direct labor costs as they are directly involved in the production of goods. Salaries of salespersons and administrators in the corporate office are not related to factory operations and therefore do not count as factory overhead.

Which of the Following Is an Example of Overhead in a Factory