Which of the following is an example of factory overheads?
-
salary of marketing officer
- salary of production officer
- salary of accounting officer
- wages of machine operator
The correct answer is: A
Explanation
Factory overhead is the costs incurred during the manufacturing process, not including the costs of direct labor and direct materials.
Examples of factory overhead costs include: indirect materials, indirect labor, depreciation of the factory equipment and plant, amortization of patents, the cost of small tools used, factory utilities, insurance on the factory and equipment, property taxes on plant and equipment, property taxes on materials and goods