Which of the following statements is correct?
A)Overtime premiums should be treated as a component of manufacturing overhead.
B)Overtime premiums should be treated as a component of direct labor.
C)Idle time should be treated as a component of direct labor.
D)Idle time should be accounted for as a special type of loss.
E)Overtime premiums should be treated as a component of direct labor and idle time should be

Question

Quizplus · Accepted Answer

Overtime premiums are typically considered part of manufacturing overhead because they are not directly attributable to specific units of production, unlike direct labor costs.

Which of the Following Statements Is Correct