07.12.2009 · Direct Labor: it is the type of labor which is directly related with the manufacturing of product in factory Like people directly working on machines for production of goods.
Imagine you’re the owner of a construction company. Consider both direct and indirect labor while contemplating contracts. Direct labor cost is easy to understand. It refers to the expenses, including wages and other benefits, that you incur for employees that directly work on the projects such as the laborer, rigger, foreman and pipefitter.
Is factory wages a direct Labour? Direct labor are those workers on the production line whose efforts directly produce what the factory manufactures. All other workers are classified as indirect workers. These are the direct labor workers, and the result is the direct labor costs for the factory payroll period. Is factory labor a direct labor?
The difference between direct labor and indirect labor is that only labor involved in the hands-on production of goods and services is considered to be direct labor. All other labor is, by default, classified as indirect labor. This distinction is important from an accounting perspective, since the two types of labor are treated differently.
Jan 07, 2020 · Direct labor cost is easy to understand. It refers to the expenses, including wages and other benefits, that you incur for employees that directly work on the projects such as the laborer, rigger, foreman and pipefitter. Indirect labor refers to employees who are not involved in planning or construction projects.
07.01.2020 · Direct labor are those workers on the production line whose efforts directly produce what the factory manufactures. All other workers are classified as indirect workers. These are the direct labor workers, and the result is the direct labor costs for the factory payroll period.
Wages paid to the factory warehouse foreman are considered an example of: Direct Labor Period Cost A) Yes Yes B) Yes No C ) No Yes D ) No No Answer: D.
Business; Accounting; Accounting questions and answers; Classify the following costs as Direct or Indirect costs. The foreman’s salary Supplies Depreciation of factory equipment Leather used in the manufacture of shoes Lubricants for machines Fringe benefits (an extra benefit supplementing an employee's salary) Wood in making furniture Glue in tube making FICA tax …
Dec 24, 2021 · April 14, 2021. / Steven Bragg. The difference between direct labor and indirect labor is that only labor involved in the hands-on production of goods and services is considered to be direct labor. All other labor is, by default, classified as indirect labor. This distinction is important from an accounting perspective, since the two types of labor are treated differently.
The correct answer is option d. neither direct labor nor a period cost. Wages paid for factory supply shop foreman is considered manufacturing... See full answer below.
For example wages paid to a foreman at a fixed point of production are direct. On the other hand, if he is engaged in repairing various machines in the factory— ...