Question

The company incurred the following indirect costs for January. What would be included in the actual overhead costs?

1) Direct labor costs
2) Direct material costs
3) Administrative expenses
4) Sales commissions

Answer 1

The actual overhead costs for a company typically include administrative expenses and sales commissions.

Step-by-step explanation:

The actual overhead costs for a company typically include 3) Administrative expenses and 4) Sales commissions. These costs are indirect in nature, meaning they are not directly tied to the production of goods or services but are necessary for the overall operation of the company. Examples of administrative expenses include salaries of non-production employees, office supplies, and utilities. Sales commissions are payments made to individuals or teams for generating sales for the company.