Which of the following is an example of overhead in a factory?
A)Wages of machine operators
B)Wages of factory maintenance personnel
C)Wages of administrators in the corporate office
D)Salaries of salespersons

Question

Quizplus · Accepted Answer

Overhead costs refer to expenses that are not directly related to the production of goods, such as rent, utilities, and maintenance. Wages of factory maintenance personnel fall under this category as they are necessary for the maintenance of the factory, but are not involved in the actual production process. Wages of machine operators, on the other hand, are considered direct labor costs, as they are directly involved in production. Wages of administrators and salespersons are not relevant to factory overhead costs.

Which of the Following Is an Example of Overhead in a Factory