Which of the following costs is not included in factory overhead?
A) Payroll taxes on the wages of supervisory factory workers.
B) Indirect labor.
C) Depreciation of manufacturing equipment.
D) Manufacturing supplies used.
E) Direct materials.

Question

Quizplus · Accepted Answer

Direct materials are not included in factory overhead as they are directly used in the production process and are considered a part of the product cost. Factory overhead includes indirect costs such as indirect labor, depreciation, utilities, maintenance, and other indirect expenses associated with the production process. Payroll taxes on the wages of supervisory factory workers, indirect labor, and manufacturing supplies used are all examples of factory overhead costs.

Which of the Following Costs Is Not Included in Factory