Final answer:
Fabric used in upholstery is considered a direct material cost, not a direct labor cost. Direct labor refers to the cost of labor of those workers who make the product directly. The fabric cost is separate and not included in direct labor calculation.
Step-by-step explanation:
The question asks if the fabric used to upholster furniture is considered a direct labor cost within a business setting. Direct labor cost refers to the wages of the workers who are directly involved in the production of a product. In the manufacturing of upholstered furniture, direct labor would include the hours worked by employees cutting, sewing, and assembling the furniture. The cost of the fabric itself would be considered a direct material cost, not direct labor. In an example related to the manufacturing of home exercise cycles, if the labor cost is $24 per hour, and a plan requires 50 hours of labor and one machine for a manufacturing cost of $200 each, then the total direct labor cost would be 50 hours times $24/hour, equaling $1,200, plus the cost of the machine.