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

Question

Quizplus · Accepted Answer

If maintenance workers are specifically working on a particular product or batch, their wages can be classified as direct labor costs rather than factory overhead. This would depend on the specific circumstances and the allocation method used in the process costing system.

In Some Circumstances, a Process Costing System Can Classify Wages