Which of the following costs would a computer manufacturer include in manufacturing overhead? a. The cost of the disk drives. b. The wages earned by computer assemblers. c. The cost of the memory chips. d. Depreciation on testing equipment.

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Lam

2 May, 07:51

Which of the following costs would a computer manufacturer include in manufacturing overhead? a. The cost of the disk drives. b. The wages earned by computer assemblers. c. The cost of the memory chips. d. Depreciation on testing equipment.

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Konnor Dillon · Answer 1

d. Depreciation on testing equipment.

Explanation:

Manufacturing overhead are cost associated with producing a product but cannot be traced to the product in a feasible way.

Examples include indirect costs in production: labor for plant maintenance, rent, insurance, taxes, depreciation, and cleaning labor.

For the computer manufacturer depreciation on testing equipment is an indirect overhead cost because it is not a direct input when producing goods.