WAEC - Accounts Principles Of Accounts (2018 - No. 29)
One of the components of factory overhead is............
raw materials consumed
manufacturing wages
carriage inwards
depreciation of plant and machinery
Explanation
Costs that support production but are not direct materials or direct labor are considered overhead. It includes;
- Depreciation of equipment and factory facilities.
- Rent, property taxes, insurance, and utilities.
- Employment costs for supervisors, maintenance and quality control staff, and any other on-site employees who aren't physically making signs.
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