Question

2. Select the correct sentence for errors in the preceding report. 1. Sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. 2. Promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead. 3. Sales salaries, promotional expenses, corporate office insurance and property taxes should not be included in factory overhead. 4. Half of sales salaries, promotional expenses, corporate office insurance and property taxes, and corporate office depreciation should not be included in factory overhead.

Answer 1

Answer:

1

Explanation:

Manufacturing Overhead sometimes also referred as Factory Overhead includes only those costs which are directly traceable to the production of a product i-e, Direct labor and Material Costs.