Question

Expenses incurred during production other than direct materials and direct labour is called ______ factory expenses; those charged to production on an estimated basis are called ___________ factory expenses.

• A. Indirect, Applied
• B. Applied, Actual
• C. Indirect, Direct
• D. None of the above, None of the above

Answer 1

Answer: (A)

Indirect, Applied

Overheads actually incurred during production are called actual factory expense and expenses which are charged to production on estimation are called applied factory expenses.