Question

Which of the following would most likely not be included as manufacturing overhead in furniture manufacturing?

a) Factory utilities
b) Direct materials
c) Depreciation on factory equipment
d) Factory supervisor salaries

Answer 1

Direct materials are not included in manufacturing overhead for furniture manufacturing because they are directly traceable to the product being made. Manufacturing overhead includes indirect costs like factory utilities, depreciation on equipment, and supervisor salaries. Option b.

Step-by-step explanation:

The correct answer to the student's question is b) Direct materials. In the context of furniture manufacturing, manufacturing overhead refers to all of the indirect costs associated with producing a product, which do not include direct materials costs.

Direct materials are the raw materials that are used to create the final product and are directly traceable to that product. Therefore, they are not part of manufacturing overhead.

Manufacturing overhead, also known as factory overhead, indirect production costs, or burden, typically includes:

Factory utilities: The cost of power, water, and other utilities used in the manufacturing process.

Depreciation on factory equipment: The allocation of the cost of factory machinery and equipment over their useful lives.

Factory supervisor salaries: The wages paid to supervisors who oversee production but do not directly participate in the manufacturing process.

So Option b.