Question

all of the following would be considered manufacturing overhead costs by a book publisher except a. wages paid to the production supervisor. b. fire insurance on the printing facilities. c. depreciation on the printing equipment. d. rent on the warehouse containing the finished books inventory.

Answer 1

D) Rent on the warehouse housing the finished books inventory would be considered manufacturing overhead costs for all of the following.

What are overhead costs?

The expenditures involved in running a firm that isn't related to developing or manufacturing a good or service are known as overhead costs, often known as overhead or operating expenses. They are the costs a business must pay to remain open, regardless of how successful it is.

All expenses on the income statement of the business that aren't directly connected to producing, marketing, or selling a product or offering a service are referred to as overhead costs.

Because they are directly associated with the goods produced, potter's clay and a potting wheel are not considered overhead expenses. Because the potter must pay rent whether she is producing goods or not, the rent for the space where she works is an overhead expense.

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