Asked by Annisa Rahma Putri on Jul 18, 2024
Verified
The labor costs that have been identified as indirect labor should be charged to
A) manufacturing overhead.
B) direct labor.
C) the individual jobs worked on.
D) salary expense.
Indirect Labor
Labor costs associated with support work that does not directly contribute to the manufacture of products or the provision of services, such as maintenance and supervisory wages.
Manufacturing Overhead
All indirect costs related to the manufacturing process, including but not limited to utilities, rent, and salaries of support staff.
- Examine the influence of both direct and indirect materials as well as labor on the cost of products.
Verified Answer
KR
Kayla ReidtJul 25, 2024
Final Answer :
A
Explanation :
Indirect labor costs are considered part of manufacturing overhead, which includes all indirect costs associated with manufacturing a product, such as rent, utilities, and maintenance. These costs cannot be directly traced to a specific product or job, and therefore must be allocated across all products using a predetermined overhead rate.
Learning Objectives
- Examine the influence of both direct and indirect materials as well as labor on the cost of products.
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