Which of the following is an example of direct labor cost for a cell phone manufacturer?
A) cost of oil lubricants for factory machinery
B) cost of wages of assembly worker
C) salary of plant supervisor
D) cost of phone components

Question

Quizplus · Accepted Answer

Direct labor cost refers to the wages and benefits of employees who directly work on a product or service. In the context of a cell phone manufacturer, assembly workers who physically put the phones together would be considered direct labor. The cost of oil lubricants for factory machinery (A) would be considered indirect materials or indirect expenses, the salary of a plant supervisor (C) would be considered indirect labor, and the cost of phone components (D) would be considered direct materials.

Which of the Following Is an Example of Direct Labor