Question

Which of the following costs is NOT a factory
overhead expense?
(A) Depreciation of equipment used in the research
department
(B) Salary of quality control inspector
(C) Overtime premium paid to direct labour
(D) Machine maintenance labour cost​

Answer 1

Answer:

Option D

Explanation:

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Answer 2

Which of the following costs is NOT a factory overhead expense?

(A) Depreciation of equipment used in the research department

(B) Salary of quality control inspector

(C) Overtime premium paid to direct labour

(D) Machine maintenance labour cost​

The correct answer :

(A) Depreciation of equipment used in the research department

Explanation :

Depreciation of equipment used in the research department is not a factory overhead expense.

Depreciation on equipment refers to the spread of the cost of the equipment after deducting the salvage value over the entire lifetime of such equipment, and such reduction is made using such equipment, thereby reducing its resale value.

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