Final answer:
Factory rent is part of manufacturing overhead, which encompasses indirect costs necessary for production. It is a fixed cost, unlike direct labor and raw materials, and is not part of the finished goods.
Step-by-step explanation:
The part of manufacturing overhead that is being referred to in this question is Factory rent. Manufacturing overhead is a category of indirect costs associated with manufacturing a product, which includes expenses that are not directly tied to the production but are necessary for the process to occur.
This means factory rent, which is a fixed cost, falls under manufacturing overhead. Factory rent is consistent regardless of the production volume, unlike direct labor and raw materials, which vary with production levels. Finished goods are the end product and do not constitute a part of manufacturing overhead.