Which of the following costs would not be included as part of
manufacturing overhead?
[[selectone]]
a. Insurance on sales vehicles
b. Lubricants for production equipment.
c. Direct labor overtime premium
d. Depreciation of production equipment.
a. Insurance on sales Vehicles would not be included as part of manufacturing overhead. |
Explanation: Manufacturing overhead is the expenses which directly related to production activities or incurred in relation to production activities and its related resources. It is very clear from the available options that rest three expenses are directly related to production resources that will form part of manufacturing overhead whereas insurance on sales vehicles is selling and administrative expenses which will not form part of manufacturing overhead. |
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