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Which of the following would be classified as manufacturing overhead?

a. Marketing research
b. Depreciation on president's office facilities
c. Advertising
d. Factory taxes
e. Indirect materials
f. Machinery maintenance

1 Answer

4 votes

Final answer:

Manufacturing overhead includes depreciation on president's office facilities, factory taxes, indirect materials, and machinery maintenance. Hence, option b, d, e and f are correct.

Step-by-step explanation:

Manufacturing overhead refers to the indirect costs incurred in the production process that cannot be easily traced to specific products. Examples of manufacturing overhead include:

  1. Depreciation on president's office facilities: This is a fixed cost associated with the entire manufacturing operation and is not directly tied to the production of a specific product.
  2. Factory taxes: These taxes are paid by the manufacturing facility and are considered a part of the overhead expenses.
  3. Indirect materials: These are materials used in the production process but are not considered direct raw materials. They are part of the overall manufacturing overhead.
  4. Machinery maintenance: The cost of maintaining machinery used in the production process is an overhead expense.

Therefore, the correct options classified as manufacturing overhead are:

  • Depreciation on president's office facilities
  • Factory taxes
  • Indirect materials
  • Machinery maintenance

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