Indirect labor is included in factory overhead.

Question

Quizplus · Accepted Answer

Indirect labor refers to the wages and salaries paid to workers who are involved in the production process but not directly involved in converting raw materials into finished products. Examples include maintenance staff, supervisors, quality control personnel, and production planners. Indirect labor costs are included in the calculation of factory overhead, which represents all of the indirect costs associated with production that cannot be attributed directly to specific units of output.

Indirect Labor Is Included in Factory Overhead