Question

An example of a production overhead would be:

• A. materials
• B. labour cost
• C. supervisory costs
• D. rent

Answer 1

Answer: (C)

supervisory costs

An example of a production overhead would be supervisory costs.
Materials and labour costs would be directly attributable to the product and would be classed as direct costs. Rent is a non production overhead but salaries of supervisors are related to production and are an overhead as they do not vary directly with output.