Manufacturing overhead includes indirect production costs Steps:

• Identify manufacturing overhead as all indirect costs incurred in production, excluding direct materials and direct labor.
• For a computer assembly plant, classify costs: direct costs (e.g., specific components, assembly wages) are not overhead; indirect costs (e.g., factory utilities, supervisor salaries) are.
• Review options: Assume 1 and 2 are direct (materials/labor), 3 and 4 are indirect (utilities/depreciation) based on standard accounting.
• Select pair matching indirect costs: 3 and 4.

Why D is correct:

• D pairs two indirect costs, aligning with the definition of manufacturing overhead as factory-related expenses not directly traceable to units produced.

Why the others are wrong:

• A includes direct costs (1), excluding them from overhead.
• B includes direct cost (1), misclassifying it as overhead.
• C includes one direct (likely 2 as labor), not purely indirect.

Not enough information on exact costs 1–4 for precise classification. Final answer: D