Which of the following is part of factory overhead cost?
A) sales commissions
B) depreciation of factory equipment and machines
C) depreciation of salesperson's vehicle
D) direct materials used

Question

Quizplus · Accepted Answer

Factory overhead costs include expenses that are necessary to operate the factory but cannot be directly attributed to a specific product or production process. Depreciation of factory equipment and machines is an example of a factory overhead cost. Sales commissions (A) and depreciation of a salesperson's vehicle (C) are not related to the factory overhead cost. Direct materials used (D) is a direct cost and is not part of the factory overhead cost.

Which of the Following Is Part of Factory Overhead Cost