Question

Manufacturing overhead includes: Multiple Choice all direct material, direct labor and administrative costs. all manufacturing costs except direct labor. all manufacturing costs except direct labor and direct materials. all selling and administrative costs.

Answer 1

Answer:

all manufacturing costs except direct labor and direct materials

Explanation:

Manufacturing or production/Factory costs are usually classified as direct or indirect.  

Direct cost are those costs incurred that are directly linked to production.  

This includes direct labour, direct material, etc.

Manufacturing overheads or indirect costs are costs incurred in the production process that may not be linked directly to the production of goods and services.