Question

The manager of a print shop manages the entire plant. Her wages would most likely be considered:

a) Direct labor
b) Either indirect labor or factory overhead
c) Administrative salaries
d) None of the above

Answer 1

The print shop manager's wages are usually categorized as indirect labor or factory overhead, not directly tied to production but necessary for plant operation.

Step-by-step explanation:

The manager of a print shop who manages the entire plant would most likely have her wages considered as indirect labor or factory overhead. This is because her work is not directly involved in the hands-on production of goods or services but is crucial for the overall operation and administration of the plant. Her salary is associated with the running of the plant itself, which is a part of the overhead costs that a company needs to allocate to the cost of producing its products or services.