Question at position 3 Which of the following would most likely NOT be included as manufacturing overhead in a furniture factory?The workman’s compensation insurance of the supervisor who oversees production.The amount paid to the individual who stains a chair.The cost of the glue in a chair.The factory utilities of the department in which production takes place.

Question

Question at position 3 Which of the following would most likely NOT be included as manufacturing overhead in a furniture factory?The workman’s compensation insurance of the supervisor who oversees production.The amount paid to the individual who stains a chair.The cost of the glue in a chair.The factory utilities of the department in which production takes place.

BlackTom AI · Accepted Answer

In this question, we’re evaluating which item would most likely NOT be included as manufacturing overhead in a furniture factory.
Option 1: The workman’s compensation insurance of the supervisor who oversees production. This is typically considered manufacturing overhead because it is a indirect cost related to the production process and not tied to a specific product unit.
Option 2: The amount paid to the individual who stains a chair. This cost is directly traceable to a specific product (the chair being stained) and would usually be treated as a direct labor or direct manufacturing cost, not overhead.
Option 3: The cost of the glue in a chair. Glue is an indirect material; while it is essential to production, it is not easily traced to a single unit and is generally categorized as overhead or indirect manufacturing cost.
Option 4: The factory utilities of the department in which production takes place. Utilities for the production department are classic examples of manufacturing overhead because they support production but cannot be linked to a single finished unit.
To determine which would NOT be included as overhead, we consider traceability and typical costing conventions. A stain job is a direct activity that can be associated with a specific chair, making it a direct cost rather than overhead. In contrast, supervisor insurance, glue as an indirect material, and utilities in the production department align with overhead characteristics. The staining payment is the standout item that would not be categorized as overhead.
Therefore, the staining payment is the correct characterization of a non-overhead cost in this context.

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