1. The wages paid to a security guard in a manufacturing plant are:

a. a product cost, but not part of factory overhead

b. a product cost that is also part of factory overhead

c. neither a product cost nor part of factory overhead

2. Manufacturing overhead does not include:

a. the cost of glue used in textbook binding

b. commissions paid to salespeople

c. property taxes on factory equipment

d. wages paid to a factory maintenance worker

3. The salary paid to a corporate office secretary would be classified as a(n):

a. administrative expense c. manufacturing overhead cost

b. direct labor cost d. selling expense

4. Inexpensive Yellow buttons were ordered specifically for the manufacture of Job #202, an order for 4 matching polo shirts, and will not be used on any other job. The company does not ordinarily keep yellow buttons on hand. The cost would be classified as:

a. indirect materials b. other indirect cost c. direct materials

5. Which of the following should be included as part of manufacturing overhead in the production of plastic toy blocks?

a. The amount paid to the individuals who set up machines for a product run

b. The cost of plastic material used to produce the blocks

c. The cost of insurance on the factory building

d. The cost of rent for the corporate offices