Manufacturing overhead:
A) can be either a variable cost or a fixed cost.
B) includes the costs of shipping finished goods to customers.
C) includes all factory labor costs.
D) includes all fixed costs.

Question

Quizplus · Accepted Answer

Manufacturing overhead can include both variable costs (such as utilities or materials used in production that vary depending on production levels) and fixed costs (such as rent or depreciation that do not vary with production levels). Additionally, manufacturing overhead does not include shipping costs (these are typically categorized as a selling expense) or all factory labor costs (direct labor costs are not considered a part of overhead).

Manufacturing Overhead