Costs that would be included in the factory overhead account would normally not include:
A) depreciation on plant and equipment.
B) indirect materials.
C) direct materials.
D) factory gas and electricity.

Question

Quizplus · Accepted Answer

Direct materials would be included in the cost of goods sold or in the work in process account, not in the factory overhead account. Factory overhead typically includes indirect expenses such as utilities, rent, and indirect materials. Depreciation on plant and equipment and factory gas and electricity are also commonly included in factory overhead.

Costs That Would Be Included in the Factory Overhead Account