Factory overhead:
A)Can be a variable cost or a fixed cost.
B)Is a prime cost.
C)Can only be a fixed cost.
D)Includes all factory labor.

Question

Quizplus · Accepted Answer

Factory overhead can include both variable and fixed costs, such as rent, utilities, and indirect labor, that are not directly attributable to the cost of a specific product. It is not a prime cost, which refers specifically to direct materials and direct labor. Therefore, choice A is the best answer.

Factory Overhead