Which of the following statements is correct in describing manufacturing overhea

Question

Which of the following statements is correct in describing manufacturing overhead? A. Manufacturing overhead when combined with direct materials cost forms conversion cost. B. Manufacturing overhead consists of all manufacturing costs except for prime cost. C. Manufacturing overhead is a period cost. D. Manufacturing overhead when combined with direct labor cost forms prime cost. Which of the following statements is correct in describing manufacturing overhead? A. Manufacturing overhead when combined with direct materials cost forms conversion cost. B. Manufacturing overhead consists of all manufacturing costs except for prime cost. C. Manufacturing overhead is a period cost. D. Manufacturing overhead when combined with direct labor cost forms prime cost. A. Manufacturing overhead when combined with direct materials cost forms conversion cost. B. Manufacturing overhead consists of all manufacturing costs except for prime cost. C. Manufacturing overhead is a period cost. D. Manufacturing overhead when combined with direct labor cost forms prime cost.

Explanation / Answer

Manufacturing overhead is not period cost, Manufacturing overhead is not combined direct material with conversion cost, Manufacturing overhead is not when combined with direct labour cost with prime cost. but yes manufacturing overhead consists of all manufacturing cost except for prime cost.

so answer is b) Manufacturing overhead consists of all manufacturing costs except for prime cost.

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