Theoretically, the cost of employer paid health insurance premiums for direct labor personnel should be considered a manufacturing overhead cost.

Question

Quizplus · Accepted Answer

The cost of employer-paid health insurance premiums for direct labor personnel is typically considered part of the direct labor cost, not manufacturing overhead, because it is directly associated with the employees who are actively involved in the production process.

Theoretically, the Cost of Employer Paid Health Insurance Premiums for Direct