Question 14
Manufacturing AccountsWhich of the following is an example of factory overheads?
- A.Salary of marketing officer
- B.Salary of production officer
- C.Salary of accounting officer
- D.Wages of machine operator
Show the answer and explanation
Answer: B (Salary of production officer)
Explanation
A production officer supervises the factory but does not work directly on the product, so his salary is a factory overhead (indirect labour). A machine operator's wages are direct labour, part of prime cost.