Asked by Logan Robinson on Jul 04, 2024
Verified
The costs of materials and labor that do not enter directly into the finished product are classified as factory overhead.
Factory Overhead
All indirect costs associated with manufacturing, including utilities, depreciation, and salaries for managerial staff, not directly tied to production.
Materials And Labor
Costs associated with the direct materials and labor required to produce a good or service; key components of the manufacturing process.
- Become familiar with the division of manufacturing costs into direct materials, direct labor, and factory overhead.
Verified Answer
SD
SHRISHTY DAYALJul 06, 2024
Final Answer :
True
Explanation :
Factory overhead costs include expenses related to maintaining and operating a manufacturing facility such as rent, utilities, machine maintenance, indirect labor, and indirect materials. These costs do not directly relate to the production of a specific product but are incurred to support manufacturing operations as a whole.
Learning Objectives
- Become familiar with the division of manufacturing costs into direct materials, direct labor, and factory overhead.