Which of the following should not be considered in the calculation of direct labor cost?
A) The employer's portion of social security and unemployment taxes.
B) The wage rate for each employee multiplied by the number of hours each employee works on each job.
C) Fringe benefits given to an employee who works on a job.
D) Overtime pay to an employee as a result of production problems not related to a specific job.

Question

Quizplus · Accepted Answer

Direct labor cost should only include the wages paid to employees for the time they spent working on a specific job, and not any additional costs incurred due to production problems or unrelated overtime. The employer's portion of social security and unemployment taxes, the wage rate for each employee, and any fringe benefits given to employees who work on a job are all factors that should be considered in the calculation of direct labor cost.

Which of the Following Should Not Be Considered in the Calculation