LO 2.2Which of the following would not be classified as manufacturing overhead?

indirect materials

indirect labor

direct labor

property taxes on factory

Direct labor

Explanation:

To compute the manufacturing overhead, we considering the following:

= Factory utilities + Depreciation on factory equipment + Property taxes on factory building + Indirect factory labor + Indirect materials + Factory repairs + Factory manager salary

The direct labor is a direct expense which is related to the product whereas the manufacturing overhead records only indirect cost which is not directly related to the product i. e it relates to the factory expenses