Q304
Labour which works as forklift truck, plant guards and rework labour is classified as
A.
prime overhead
B.
conversion overhead
C.
factory overhead
D.
manufacturing overhead
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Labour which works as forklift truck, plant guards and rework labour is classified as manufacturing overhead. Manufacturing overhead is all indirect costs incurred during the production process. This overhead is applied to the units produced within a reporting period.