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WAEC Financial Accounting 2014 Question 48

Question 48

Manufacturing Accounts

Which of the following is not a factory overhead cost?

  1. A.Manufacturing wages
  2. B.Factory rent
  3. C.Depreciation of machinery
  4. D.Salary of factory guard.
Show the answer and explanation

Answer: A (Manufacturing wages)

Explanation

Manufacturing (direct) wages are part of prime cost. Rent, depreciation and the guard's salary are indirect factory overheads.