Which of the following costs is not included in factory overhead


15) Which of the following costs is not included in factory overhead? A) Direct materials. B) Indirect labor. C) Payroll taxe

Answer

Correct option is: A. Direct materials Direct materials is a primary and direct cost that should be separately shown and is not a part of factory overhead cost Whereas costs like – Indirect labor, payroll taxes on wages of factory supervisors, manufacturing supplies used, depreciation on manufacturing equipment are indirect costs and shall be obtained as a part of Factory overheads cost

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