In calculating product costs the wages paid to employees whose time can be directly traced to products are classified as:

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Wages paid to employees whose time can be directly traced to products are classified as direct labour costs, as they are directly involved in the production process. Indirect labour costs, on the other hand, are wages paid to employees who do not directly contribute to the production process but perform support activities such as maintenance, cleaning, and supervision. Factory overhead refers to all other production costs that are not directly related to labour, such as rent, utilities, and equipment depreciation. Fixed costs are costs that do not vary with changes in production levels.

In Calculating Product Costs the Wages Paid to Employees Whose