Question

In which of the following categories does indirect labor belong?

Product Cost Manufacturing Overhead Period Cost
Group of answer choices
a.Yes Yes No
b.Yes Yes Yes
c.Yes No No
d.No No Yes

Answer 1

Indirect labor belongs under 'Product Cost' and 'Manufacturing Overhead' categories but not under 'Period Cost'. Option a. Yes Yes No is the correct choice indicating that indirect labor is part of both product costs and manufacturing overhead but not a period cost.

Step-by-step explanation:

In which of the following categories does indirect labor belong? The correct answer to this question is option a. Yes Yes No. Indirect labor costs are considered to be a part of Product Cost and are also included in Manufacturing Overhead. However, they are not considered Period Costs, since period costs are expensed on the income statement in the period in which they're incurred and are not included in the cost of manufactured goods, while indirect labor costs are allocated to products along with other manufacturing overhead costs.

Therefore, indirect labor is a cost incurred during the manufacturing process but isn't directly tied to a specific product. Examples might include the wages of maintenance workers, supervisors, and quality control inspectors.