Certain workers are assigned the task of unpacking production materials received from suppliers.These workers place the material in a storage area pending subsequent use in the production process.The labor cost of such workers is normally classified as:
A)Direct labor.
B)Direct materials.
C)Indirect labor.
D)Indirect materials.

Question

Quizplus · Accepted Answer

The labor cost of workers who are not directly involved in the production process, but are involved in supporting activities, such as unpacking and storing production materials, is classified as indirect labor. This cost is not directly attributable to a specific product, hence it is treated as indirect cost and not as direct cost.

Certain Workers Are Assigned the Task of Unpacking Production Materials