Variable overhead costs include all of the following except:
A)Electricity to power machinery.
B)Factory supplies.
C)Rental of factory building.
D)Small tools.

Question

Quizplus · Accepted Answer

Electricity to power machinery, factory supplies, and small tools are all examples of variable overhead costs because their usage varies based on the level of production. However, the rental of the factory building is typically considered a fixed overhead cost since the rent does not fluctuate with changes in production levels.

Variable Overhead Costs Include All of the Following Except