In the context of factory overhead, direct labor used, factory supplies used, and production supervisors' salaries are typically classified as part of factory overhead. The item that would not be classified as part of factory overhead is:
c. Amortization of manufacturing patents
Explanation:
1. Direct labor used: Direct labor refers to the labor cost directly associated with the production of goods. It is part of factory overhead because it contributes to the manufacturing process's overall cost.
2. Factory supplies used: These are materials consumed during the production process, such as lubricants, cleaning supplies, or small tools. They are considered part of factory overhead as they support the manufacturing operations.
3. Production supervisors' salaries: Salaries of production supervisors who oversee and manage the manufacturing process are included in factory overhead costs as they are essential for production to run smoothly.
4. Amortization of manufacturing patents: This cost is not directly related to the day-to-day manufacturing activities. Amortization of patents is more likely to be classified as an intangible asset expense rather than a factory overhead cost.
By understanding the nature of these costs and their relation to the production process, you can differentiate which items are classified as part of factory overhead and which are not.
