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2 February, 09:58

Which of the following would be classified as a factory overhead cost by a baking company? a. depreciation of office equipmentb. strawberriesc. depreciation of factory equipmentd. freight to deliver the product to the customer

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  1. 2 February, 12:41
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    c. Depreciation of factory equipment

    Explanation:

    All costs incurred as a result of production activities excluding labor cost and direct material costs are called factory overhead costs. These costs are accumulated before allocation is done on a basis consistent with the entity's policy. example of factory overhead costs incurred in the production process are, factory rent, production supervisor's salary, depreciation of factory plant and equipment, e. t. c.
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