Questions: Which of the following is NOT part of the manufacturing cost per unit? Sales commission Direct materials Direct labor Manufacturing overhead

Which of the following is NOT part of the manufacturing cost per unit? Sales commission Direct materials Direct labor Manufacturing overhead
Transcript text: Which of the following is NOT part of the manufacturing cost per unit? Sales commission Direct materisls Direct labor Manufacturing overhead
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Solution

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The answer is the first one: Sales commission.

Explanation for each option:

  1. Sales commission: This is not part of the manufacturing cost per unit. Sales commission is a selling expense, which is incurred after the product is manufactured and is related to the selling process, not the production process.

  2. Direct materials: This is part of the manufacturing cost per unit. Direct materials are the raw materials that are directly used in the production of a product and are a fundamental component of manufacturing costs.

  3. Direct labor: This is part of the manufacturing cost per unit. Direct labor refers to the wages of workers who are directly involved in the production of goods. It is a key component of manufacturing costs.

  4. Manufacturing overhead: This is part of the manufacturing cost per unit. Manufacturing overhead includes all the indirect costs associated with production, such as utilities, maintenance, and factory supplies. It is an essential part of the total manufacturing cost.

In summary, sales commission is not included in the manufacturing cost per unit, as it is related to selling expenses rather than production costs.

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