Which of the following costs would not be included in factory overhead in the manufacture of a student's desk?
A)The oil used to maintain the machinery.
B)The salary of the supervisor of the Assembly department.
C)The wood used to form the top of the desk.
D)The wages of personnel who perform inspections of incoming materials.

Question

Quizplus · Accepted Answer

The cost of the wood used to form the top of the desk would be considered a direct material cost, as it is a cost that can be directly traced to the finished product. Factory overhead would include indirect costs such as A) the oil used to maintain the machinery, B) the salary of the supervisor of the Assembly department, and D) the wages of personnel who perform inspections of incoming materials.

Which of the Following Costs Would Not Be Included in Factory