Which of the following costs is typically categorized as manufacturing overhead?

Manufacturing overhead includes all the indirect costs associated with the production process that are not directly assignable to specific units of production. Depreciation on production equipment fits this category perfectly, as it represents the allocation of the cost of machinery and equipment used in production over time. This cost is crucial to understand because it impacts the overall cost structure of manufacturing without being tied to a specific product or output level.

On the other hand, wages paid to factory workers are considered direct labor costs, as they can be directly traced to the products being manufactured. The costs of raw materials are direct materials costs since they are directly incorporated into the final product. Sales commissions are categorized under selling expenses and are not part of the manufacturing overhead; they relate more to the selling and administrative costs incurred to promote and sell the products after they have been manufactured.

Thus, the classification of depreciation on production equipment as manufacturing overhead is accurate because it reflects indirect costs vital to the production process.