Match the items below for a bakery to the type of cost (a-d). Answers may be used more than once.
-Depreciation expense-factory
A)Direct materials
B)Direct labor
C)Factory overhead
D)Nonmanufacturing cost
Challenging

Question

Quizplus · Accepted Answer

Depreciation expense of factory equipment is considered a factory overhead cost, along with other indirect costs associated with manufacturing baked goods.

Answer: A, B, D
 Direct materials and direct labor costs directly relate to the production of baked goods, while nonmanufacturing costs may include expenses such as advertising, rent for the storefront, and office supplies.

Match the Items Below for a Bakery to the Type