Question

6. Which of the following costs would not be considered part of the manufacturing overhead of a furniture manufacturer?
A. Factory maintenance expense.
B. Depreciation expense on factory equipment.
C. The cost of grease used to lubricate factory equipment.
D. The cost of wood used in furniture construction.

Answer 1

A manufacturing overhead is the indirect production cost that a firm incurs because of its production function.

D. The cost of wood used in furniture construction

is the cost that would not be considered part of the manufacturing overhead of a furniture manufacturer.

The cost of wood is a directcost and not an overhead cost of manufacturing. Material and direct labout costs are not included in the manufacturing overhead costs.

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