Asked by Brooke Urena on May 26, 2024
Verified
Insurance expired on factory equipment
A) Direct materials
B) Selling and administrative expense
C) Factory overhead
D) Direct labor
Insurance Expired
Represents the portion of an insurance premium that has been used up during a given period, and therefore is no longer in effect.
Factory Equipment
Fixed assets used in the manufacturing process, such as machinery and tools.
Factory Overhead
All indirect costs associated with manufacturing, including utilities, rent for the manufacturing space, and salaries of non-direct labor, accumulated and allocated to units produced.
- Identify expenses as either selling and administrative or as part of factory overhead.
Verified Answer
RM
rebecca mironchukMay 26, 2024
Final Answer :
C
Explanation :
Insurance expenses related to factory equipment are part of the factory overhead costs.
Learning Objectives
- Identify expenses as either selling and administrative or as part of factory overhead.