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18 August, 05:21

Davos Inc. makes fiberglass ski-boards in Switzerland. Identify the correct matching of terms.

Fiberglass is factory overhead

Plant real estate taxes are a period cost

Depreciation on delivery trucks is a product cost

Payroll taxes for workers in the Packaging Department are direct labor

None of the above

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  1. 18 August, 05:25
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    The matching term for the making the fiber glass is that, it is the factory overhead.

    Explanation:

    Factory overhead is the cost or an expense which will be incurred during the process of manufacturing, and it does not involve the cost of the direct materials and the direct labor.

    It is usually the total into the cost pools and allocated to the units produced during the year.

    So, in order to make the fiber glass ski boards, the fiber glass is the factory overhead as it is the expense which is incurred during the process of manufacturing.
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