Which of the Following Is an Example of Indirect Labor

question 306

Multiple Choice

Which of the following is an example of indirect labor in a manufacturing plant?

• A)Chief financial officer
• B)Machine operators
• C)Salespersons
• D)Plant managers

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Definitions:

Budgeted Production

Refers to the number of units that a company plans to produce during a specific period, based on forecasted sales and inventory requirements.

Labor Rate Variance

A measure used in accounting to calculate the difference between the actual cost of labor and the expected (or standard) cost.

Direct Labor Cost

The total expense of paying for the labor of employees directly involved in manufacturing a product or delivering a service.

Budgeted Direct Labor Cost

The estimated cost of labor directly involved in the production process, as planned in the budget.