Manufacturing overhead:
A) consists of direct material and direct labour costs.
B) is easily traced to jobs.
C) should not be assigned to individual jobs because it bears no obvious relationship to them.
D) is a heterogeneous pool of indirect production costs that can include gas and electricity costs and depreciation.

Question

Quizplus · Accepted Answer

Manufacturing overhead is a heterogeneous pool of indirect production costs that can include expenses such as gas and electricity costs, rent, insurance, property taxes, maintenance, depreciation, and indirect labour costs. It cannot be traced to specific jobs, and so it is allocated to products and services based on predetermined allocation rates.

Manufacturing Overhead