​Which of the Following Is Not Part of the Labor

question 8

Multiple Choice

​Which of the following is not part of the labor cost?

• A) ​benefits
• B) ​overtime
• C) ​tool rental
• D) ​hourly rate of pay

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Definitions:

Variable Overhead

Costs that vary with the level of production output, such as supplies and utility expenses associated with manufacturing operations.

Direct Materials

The raw materials directly used in the production of goods.

Direct Labor-Hours

The total time workers spend producing a product or service, directly involved in the manufacturing or production process.

Variable Overhead

Costs that fluctuate with the level of production output, such as utilities for a manufacturing plant, which increase as production increases.