The wages and benefits of the factory janitors are included

The wages and benefits of the factory janitors are included in manufacturing overhead. true or false

Solution

Answer is True

Explanation;

As we know that manufacturing overheads include those costs which are incurred in manufacturing process of products but can not be directly identified with the products such as direct materials, direct labor etc.

Manufacturing overheads include following costs;

·        Depreciation on equipment used in the production process

·        Property taxes on the production facility

·        Rent on the factory premises & building.

·        Utilities for the factory

·        Wages and benefits of the factory janitors etc.

Thus it is clear that the wages and benefits of the factory janitors are included in manufacturing overhead. So given statement is True.