Question

Which of the following is a manufacturing overhead cost? A. labor cost of plant workers that can be traced accurately and easily B. to a particular product overtime premiums paid C. to plant workers cost of materials that can be traced D. to individual products in an economically feasible manner the use of direct materials in the making of a finished good

Answer 1

Answer:

The correct answer is letter "B": to a particular product overtime premiums paid.

Explanation:

Overhead costs is an accounting term used for expenses that have to be paid, even if the business does not earn any revenue. The business would not be able to operate without paying its overhead expenses even if the expenses do not directly relate to the product or service being produced.  

Examples of overhead costs are rent, utilities, office supplies, repairs and maintenance, insurance, taxes, or the salaries of human resources and accounting personnel. Overtime premiums paid to plant workers fall into this category as well.