Manufacturing costs other than direct materials and direct labor,and are not readily traceable to specific units or batches of production are called:
A)Administrative expenses.
B)Nonmanufacturing costs.
C)Prime costs.
D)Factory overhead.
E)Preproduction costs.

Question

Quizplus · Accepted Answer

Factory overhead costs include all manufacturing costs other than direct materials and direct labor, which are not easily traceable to specific units or batches of production. Examples of factory overhead costs include rent, utilities, maintenance, and depreciation of manufacturing equipment.

Manufacturing Costs Other Than Direct Materials and Direct Labor,and Are