One Possible Item That Some Companies Include as Direct Manufacturing

question 185

Multiple Choice

One possible item that some companies include as direct manufacturing labor include ________.

• A) fringe benefits
• B) overtime
• C) idle time
• D) plant supervisor's salary

---

Definitions:

Direct Labor

Workers actively engaged in manufacturing products or providing services, whose labor directly contributes to output.

Finished Goods

Products that have completed the manufacturing process but have not yet been sold or distributed to the end customer.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, estimated before the costs are incurred.

Factory Overhead

The total of all the indirect costs associated with manufacturing, not including direct labor or direct materials.