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26 November, 07:52

LO 2.2Which of the following would not be classified as manufacturing overhead?

indirect materials

indirect labor

direct labor

property taxes on factory

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Answers (1)
  1. 26 November, 08:15
    0
    Direct labor

    Explanation:

    To compute the manufacturing overhead, we considering the following:

    = Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs + Factory manager salary

    The direct labor is a direct expense which is related to the product whereas the manufacturing overhead records only indirect cost which is not directly related to the product i. e it relates to the factory expenses
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