Crawford,Inc.,manufacturers lamps.Which of the following is a direct labor cost?
A)wages of machine operators
B)wages of shop foreperson
C)salary of office manager
D)salary of president

Question

Quizplus · Accepted Answer

Direct labor cost refers to the wages and benefits paid to workers directly involved in the production of a product or service. Wages of machine operators are directly involved in the production of lamps, making it a direct labor cost. The wages of a shop foreperson may also relate to the production process but it is not clear from the information provided. The salary of an office manager and president are considered indirect costs as they do not directly relate to the production process.