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24 January, 09:24

Factory overhead includes a. indirect labor and indirect materials b. indirect materials and direct materials c. factory rent and direct labor d. direct materials and direct labor

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  1. 24 January, 09:47
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    a. indirect labor and indirect materials

    Explanation:

    The direct costs are charges to the work in process account of the product but the indirect expenses are charged to the factory overhead account. It includes the all the expenses except direct material and direct labor. The most appropriate answer in the given choices is a. indirect labor and indirect materials because only this option does not have any direct cost.
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