Asked by Tara-lee Dübeaü on May 07, 2024
Verified
Factory overhead includes all manufacturing costs except direct materials and direct labor.
Factory Overhead
All indirect costs associated with manufacturing, excluding direct materials and direct labor, such as utilities, depreciation, and maintenance.
Direct Materials
Raw materials that can be directly attributed to the production of a product.
Direct Labor
The cost of wages for employees directly involved in the production or manufacturing of goods.
- Comprehend the categorization and elements of manufacturing overhead expenses.
Verified Answer
NT
Nikky TheLightAngelMay 08, 2024
Final Answer :
True
Explanation :
Factory overhead encompasses all expenses incurred during the manufacturing process that cannot be directly attributed to direct materials or direct labor, such as rent, utilities, depreciation of equipment, and maintenance costs.
Learning Objectives
- Comprehend the categorization and elements of manufacturing overhead expenses.