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A.
raw materials consumed
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B.
manufacturing wages
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C.
carriage inwards
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D.
depreciation of plant and machinery
Correct Answer: Option D
Explanation
Costs that support production but are not direct materials or direct labor are considered overhead. It includes;
- Depreciation of equipment and factory facilities.
- Rent, property taxes, insurance, and utilities.
- Employment costs for supervisors, maintenance and quality control staff, and any other on-site employees who aren't physically making signs.
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