Asked by Shalyn Olsen on May 04, 2024
Verified
Factory overhead is an example of a product cost.
Factory Overhead
Indirect costs related to manufacturing, such as utilities, maintenance, and salaries of supervisory personnel not directly involved in production.
- Master the concept of how direct materials, direct labor, and factory overhead costs contribute to the overall costing of products.
Verified Answer
SH
Shakira HoseaMay 10, 2024
Final Answer :
True
Explanation :
Factory overhead includes all the indirect costs of manufacturing a product, such as rent, utilities, and depreciation of equipment. These costs are necessary for the production of a product and are therefore considered a product cost.
Learning Objectives
- Master the concept of how direct materials, direct labor, and factory overhead costs contribute to the overall costing of products.
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