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.

Question

Quizplus · Accepted Answer

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.

The Labor Costs That Have Been Identified as Indirect Labor