Asked by Yusuf Gazali on May 26, 2024

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Verified

Depreciation expense-office

A) Direct materials
B) Direct labor
C) Factory overhead
D) Nonmanufacturing cost
Challenging

Depreciation Expense

Distributing the cost of a physical asset methodically over the time it is useful.

Direct Labor

The labor or workforce directly involved in the production of goods or providing services, considered a variable cost in manufacturing.

Factory Overhead

All indirect costs incurred during the production of goods, such as utilities, depreciation, and salaries of maintenance employees.

  • Identify the components of factory overhead costs.
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Verified Answer

CO
Chris OrtizMay 27, 2024
Final Answer :
D
Explanation :
Depreciation expense on office equipment is considered a nonmanufacturing cost because it is not directly associated with the production process. Nonmanufacturing costs are expenses that are not directly tied to the manufacturing of products, including selling, general, and administrative expenses.