10. Which of the following is part of manufacturing overhead? A. Direct labor co

Question

10. Which of the following is part of manufacturing overhead?
A. Direct labor cost
B. Indirect labor cost
C. Office depreciation

11. The salary of the president of a manufacturer is part of manufacturing overhead.
A. True
B. False

12. Depreciation on machines used in manufacturing is considered to be:
A. a direct manufacturing cost
B. an indirect manufacturing cost
C. an operating cost of the period

13. The salary of a manager for a warehouse used to store a computer manufacturers finished computers is:
A. a direct manufacturing cost
B. an indirect manufacturing cost
C. an operating cost of the period

14. The cost of shipping memory chips to a computer manufacturer is:
A. a direct manufacturing cost
B. an indirect manufacturing cost
C. an operating cost of the period

Explanation / Answer

10) B) - indirect labor cost such as labor by the president is part of Overhead 11) A) - it is a fixed expense that is not directly tied to the production of units 12) C) - depreciation is part of operations so it is an operating cost of the period 13) B) - indirect manufacturing cost 14) A) - it is a direct manufacturing cost because it is directly related to the materials

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