Question

What is included in the total amount of manufacturing overhead? A) Direct Materials and Direct Labor Costs B) Indirect Materials and Indirect Labor Costs C) Direct Labor and Factory Utilities D) Finished Goods Inventory E) Sales and Marketing Expenses

Answer 1

Explanation:

B) Indirect Materials and Indirect Labor Costs

The total amount of manufacturing overhead includes indirect costs associated with the manufacturing process, such as indirect materials (materials used in the production process but not directly traceable to a specific product) and indirect labor costs (labor costs for employees who are not directly involved in producing a specific product, such as maintenance workers or supervisors). Manufacturing overhead does not include direct materials and direct labor costs, which are directly attributable to specific products, or costs related to finished goods inventory, sales, and marketing expenses, which are not considered part of manufacturing overhead.