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Factory direct labor is that workforce which is directly involve in production of goods like daily wages workers or skilled labor etc.
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Is direct labor used as part of the factory overhead?
Direct labor is not part of factory overhead while indirect labor is part of overhead as these labor expenses could not be calculated directly like factory supervisor salary or line manager salary etc.
Who is direct labor?
The factory workers who directly involve in production of goods is direct labor which cost is also separately identifiable.
What is direct labor?
Direct labor is that workers cost which directly involve in production of goods like factory workers or furniture maker etc.
Is maintenance direct labor?
Maintenance is not direct labor rather it is part of factory overheads if maintenance is only for those items involve in production of goods.
Does prime cost plus conversion cost equal the cost of manufacturing?
Total Manufacturing Cost = Direct Material + Direct Labor + Factory Overheads Prime Cost = Direct material + Direct Labor Conversion Cost = Direct Labor + Factory Overhead So yes prime cost and conversion cost is equal to total manufacturing cost
Is direct labor used as part of the factory overhead?
Direct labor is not part of factory overhead while indirect labor is part of overhead as these labor expenses could not be calculated directly like factory supervisor salary or line manager salary etc.
Define prime cost?
Direct Material Direct Labor direct Factory Overhead
Is factory manager wages direct labor costs?
Factory manager is not directly related to the production of units of product so it is not direct labor cost but it is included in overhead costs.
Who is direct labor?
The factory workers who directly involve in production of goods is direct labor which cost is also separately identifiable.
What is direct labor expense?
Direct labor expense is that amount which is paid to workers who are involved in production of goods in factory and their salary or wages are part of it.
What is direct labor?
Direct labor is that workers cost which directly involve in production of goods like factory workers or furniture maker etc.
Is maintenance direct labor?
Maintenance is not direct labor rather it is part of factory overheads if maintenance is only for those items involve in production of goods.
Who is labor?
The factory workers who directly involve in production of goods is direct labor which cost is also separately identifiable.
Does prime cost plus conversion cost equal the cost of manufacturing?
Total Manufacturing Cost = Direct Material + Direct Labor + Factory Overheads Prime Cost = Direct material + Direct Labor Conversion Cost = Direct Labor + Factory Overhead So yes prime cost and conversion cost is equal to total manufacturing cost
Two categories of cost comprising conversion cost?
Direct labor and Factory overhead
Are the amounts paid to factory repair and maintenance employees considered direct labor?
yes
Prime cost and conversion cost?
Prime cost = direct materials + direct laborwhile conversion cost = direct labor + factory overhead( which includes indirect materials, indirect labor and other indirect costs
