Which of the following would most likely be included in manufacturing overhead?
A)rent on the company's store
B)insurance on a delivery truck
C)rent on the company's factory
D)an oil change on a delivery truck

Question

Quizplus · Accepted Answer

Manufacturing overhead includes all costs incurred in the production process that cannot be directly traced to a specific unit of product. Rent on the company's factory would be a cost incurred in the production process and therefore would be included in manufacturing overhead. The other options, rent on the company's store and insurance/oil change on a delivery truck, are not incurred in the production process and therefore would not be included in manufacturing overhead.

Which of the Following Would Most Likely Be Included in Manufacturing