Which of the following would most likely NOT be included as manufacturing overhead in a furniture factory?
A) The cost of the glue in a chair.
B) The amount paid to the individual who stains a chair.
C) The workman's compensation insurance of the supervisor who oversees production.
D) The factory utilities of the department in which production takes place.

Question

Quizplus · Accepted Answer

The cost of staining a chair would be classified as direct labor cost, not manufacturing overhead. Manufacturing overhead typically includes indirect costs such as utilities, insurance, rent, and indirect labor costs such as salaries of supervisors and maintenance workers. The glue used in a chair would also be classified as manufacturing overhead.

Which of the Following Would Most Likely NOT Be Included