In some circumstances, a process cost accounting system can classify wages paid to maintenance workers as direct labor costs instead of factory overhead.

Question

Quizplus · Accepted Answer

If the maintenance worker's efforts are directly associated with the production of a specific product, then their wages can be classified as direct labor costs. However, if their work is not directly associated with production, then their wages will be classified as a part of factory overhead costs.

In Some Circumstances, a Process Cost Accounting System Can Classify