Which of the following statements is (are)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)Both "B" and "C" are correct.

Question

Quizplus · Accepted Answer

Overtime premiums are typically considered part of manufacturing overhead because they are not directly tied to the production of a specific unit, unlike direct labor costs.

Which of the Following Statements Is (Are)correct