Final answer:
The indirect labor cost part of Manufacturing Overhead Incurred from Sweeten Company's total labor cost of $37,300 cannot be determined without additional information detailing the split between direct and indirect labor costs.
Step-by-step explanation:
To ascertain the amount of indirect labor cost included in Sweeten Company's Manufacturing Overhead Incurred, it's crucial to understand the distinction between direct labor and indirect labor. Direct labor cost refers to the expense associated with workers who are directly involved in the production of goods. In contrast, indirect labor cost pertains to workers performing tasks that support the production process but are not directly engaged in the creation of the finished product, such as maintenance staff and supervisors.
In the provided scenario, if part of the $37,300 labor cost is indirect labor, we would need additional information to isolate this amount, as this figure might include both direct and indirect labor costs. However, in the absence of such details, we cannot accurately calculate the indirect labor cost within the Manufacturing Overhead.
To better illustrate, consider an example where widget workers receive $10 per hour for direct labor. If the company’s policy or accounting records show that a certain percentage or a set dollar amount out of the total labor cost is typically classified as indirect labor, that figure could then be identified as part of the Manufacturing Overhead. For instance, if the policy is that 10% of all labor is indirect, then $3,730 ($37,300 x 0.10) would be the indirect labor cost.