Which of the following costs is not included in factory overhead?
A)Payroll taxes on the wages of factory supervisors.
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 because they are easily traced to the specific products being manufactured. Factory overhead includes indirect costs of production that cannot be easily traced to specific products, such as indirect labor, payroll taxes on supervisors, depreciation on equipment, and manufacturing supplies.

Which of the Following Costs Is Not Included in Factory