Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as: Multiple Choice direct materials. a period cost. administrative expense. manufacturing overhead.

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Business

Luis Paul

7 October, 21:52

Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as: Multiple Choice direct materials. a period cost. administrative expense. manufacturing overhead.

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Skylar Drake · Answer 1

Option D Manufacturing Overhead

Explanation:

All the costs that are not prime cost or if we say that all the costs that are not direct cost or if we say all those costs that are not directly attributable to the unit costs are Manufacturing Overhead costs. So here the material that is used in not an integral part of the product which means it is not directly attributable to the product and hence is a manufacturing overhead cost. The expense is also not a direct cost and hence is a manufacturing overhead cost. Their is anothe defination as well, the expense is not a direct expense which means it is neither direct material nor direct labor so it is an overhead and is an manufacturing overhead.