Question

1. All of the following would be classified as manufacturing overhead except the: A) wages of supervisor of the machining shop. B) depreciation of the equipment in the machining shop. C) property taxes relating to the building that houses the machining shop. D) All of the above would be classified as manufacturing overhead.

Answer 1

Answer:

D) All of the above would be classified as manufacturing overhead.

Explanation:

Manufacturing overhead is the overhead incurred directly in relation to the manufacturing process.

It can be fixed as well as variable, there is no standard conclusion for the above on the basis of nature of overhead.

Machining shop is a part of manufacturing process, and all expense related to that will be classified as manufacturing overhead, whether the expense is in cash like supervisor salary, property taxes of building of machining shop, or non cash expense like depreciation.

Therefore, all the expenses will be included in manufacturing overhead.