Theoretically, overtime premium paid to a machine operator should be accounted for as:
A) A period cost
B) Part of direct labor
C) As indirect labor
D) As part of manufacturing overhead

Question

Quizplus · Accepted Answer

Overtime premium is considered part of manufacturing overhead because it is an additional cost incurred beyond the normal working hours and is not directly attributable to a specific product.

Theoretically, Overtime Premium Paid to a Machine Operator Should Be