Question

Which of the following is classified as a direct labor cost?
Wages of assembly-line workers Wages of a factory supervisor
A) No No
B) Yes Yes
C) No Yes
D) Yes No

Answer 1

Answer:

D) Yes No

Explanation:

The direct labor cost is that cost which is directly related to the production process of the product. It involves direct material cost too.  

So, we can say

Direct cost = Direct material cost + Direct labor cost

The wages of assembly-line workers are a direct cost and the Wages of a factory supervisor is an indirect cost that comes under the manufacturing overhead cost.