Which of the following costs would be included in factory overhead in the manufacture of a student's desk?
A)The wages of the operator of the machine that bends the metal legs of the desk into shape.
B)The wages of the forklift operator who moves finished desks to the finished goods warehouse.
C)The cost of the plastic used to form the writing surface.
D)The wages of the worker who assembles the components.

Question

Quizplus · Accepted Answer

The plastic used to form the writing surface of the desk is a direct material as it can be traced directly to the finished product. The wages of the machine operator and the assembly worker are direct labor costs as they add value to the product. The wages of the forklift operator would be classified as indirect labor as s/he does not actually work on the products themselves. Indirect labor is included in factory overhead.

Which of the Following Costs Would Be Included in Factory