Final answer:
All of the listed options (idle time, overtime premium, and fringe benefits) are considered indirect labor costs because they cannot be directly attributed to the production of specific goods or services.
Step-by-step explanation:
The correct answer is d. All of the above. Indirect labor costs encompass various types of expenses that are not directly attributable to the production of specific goods or services. Idle time is considered an indirect labor cost; it represents time workers are paid for during which they are not producing goods due to downtime or inefficiencies. Similarly, overtime premium, the extra pay given for hours worked beyond the normal work schedule, is not tied to a particular job and is therefore indirect. Lastly, fringe benefits, such as health insurance, retirement contributions, and other non-wage benefits for employees, are also indirect labor costs as they are not directly associated with specific production activities.
When accounting for the cost of producing goods or services, direct labor costs are those that can be directly traced to the production process, while indirect labor costs are necessary to support the production process but cannot be allocated to specific units of output.