Classifying Costs as Factory Overhead
Which of the following items are properly classified as part of factory overhead for Ford Motor Company F a maker of heavy automobiles and trucks?
Item Part of Factory Overhead: YesNo
a Air conditioner units for installation in vehicles
b Consultant fees for a study of production line efficiency
c Dealership sales incentives
d Depreciation on headquarters building in Dearborn, Michigan
e Depreciation on mechanical robots used on the assembly line
f Leather to be used on vehicles that have leather interiors
g Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant
h Plant managers salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassemblies
i Property taxes on the Dearborn, Michigan, headquarters building
j Vice president of human resources salary
