Factory overhead costs normally include all of the following except:
A) Indirect labor costs.
B) Indirect material costs.
C) Selling costs.
D) Machinery oil.
E) Factory rent.

Question

Quizplus · Accepted Answer

Factory overhead costs are costs that cannot be directly attributed to the production of a specific product and therefore are allocated to products based on a predetermined overhead rate. Examples of factory overhead costs include indirect labor costs, indirect material costs, machinery oil, and factory rent. However, selling costs are not part of factory overhead costs as they are associated with the selling and distribution of finished products, not with the production process.

Factory Overhead Costs Normally Include All of the Following Except