Asked by Morgan Burroughs on May 04, 2024
Verified
For a construction contractor, the wages of carpenters would be classified as factory overhead cost.
Factory Overhead Cost
All indirect costs associated with manufacturing, such as utilities, rent, and maintenance not directly tied to production.
Construction Contractor
A business or individual that contracts to perform construction services, often involving both labor and materials for building projects.
Carpenters
Skilled tradespeople who work with wood to construct, install, and maintain buildings, furniture, and other objects.
- Understand the role of costs in the manufacturing process and how they are classified and managed.
Verified Answer
CF
Christina FitzerMay 07, 2024
Final Answer :
False
Explanation :
The wages of carpenters would actually be classified as direct labor cost, not factory overhead cost. Factory overhead cost includes indirect costs such as rent, utilities, maintenance, and supplies that are necessary to run the factory but are not directly related to the labor or materials used to produce the product. Direct labor costs, on the other hand, are the wages and benefits paid to employees who directly work on producing the product.
Learning Objectives
- Understand the role of costs in the manufacturing process and how they are classified and managed.