Final answer:
The correct answer is a) Overhead. Unexpected spoilage is charged to overhead, which refers to the indirect costs incurred in the production process. such as rent, utilities, and depreciation of equipment. Unexpected spoilage would be considered an abnormal expense and would therefore be accounted for in the overhead cost category.
Step-by-step explanation:
The correct answer is a) Overhead. An unexpected spoilage that is not part of normal operations is charged to overhead. Overhead refers to the indirect costs incurred in the production process, such as rent, utilities, and depreciation of equipment. Unexpected spoilage would be considered an abnormal expense and would therefore be accounted for in the overhead cost category.
The correct answer is a) Overhead. Unexpected spoilage is charged to overhead, which refers to the indirect costs incurred in the production process. such as rent, utilities, and depreciation of equipment. Unexpected spoilage would be considered an abnormal expense and would therefore be accounted for in the overhead cost category.