Flare Co. manufactures textiles. Among Flare's 2020 manufacturing costs were the following salaries and wages:
$$\begin{array} { l r }
\text { Loom operators } & \$ 120,000 \
\text { Factory foremen } & 45,000 \
\text { Machine mechanics } & 30,000
\end{array}$$
-
What was the amount of Flare's 2020 direct labor? (CPA adapted)

Question

Flare Co. manufactures textiles. Among Flare's 2020 manufacturing costs were the following salaries and wages:
$$\begin{array} { l r } 
\text { Loom operators } & \$ 120,000 \
\text { Factory foremen } & 45,000 \
\text { Machine mechanics } & 30,000
\end{array}$$
-
What was the amount of Flare's 2020 direct labor? (CPA adapted)

Quizplus · Accepted Answer

Direct labor costs include wages for employees directly involved in manufacturing, such as loom operators. Factory foremen and machine mechanics are considered indirect labor.

Flare Co Manufactures Textiles - What Was the Amount of Flare's 2020 Direct Labor

Flare Co Manufactures Textiles -
What Was the Amount of Flare's 2020 Direct Labor