Final answer:
Indirect labor is part of factory overhead cost, which includes all costs associated with manufacturing except for direct materials and direct labor. Direct materials and direct labor are direct inputs in the production of goods, while indirect labor contributes to overhead. The correct option is C.
Step-by-step explanation:
The part of factory overhead cost among the options provided is c) Indirect labor. Factory overhead costs are all the costs incurred during the manufacturing process, excluding direct materials and direct labor. These include indirect materials, indirect labor, and other overhead costs like utilities, depreciation, and maintenance of factory equipment.
Direct materials and direct labor are considered inputs and are categorized separately because they can be traced directly to specific products. Finished goods inventory is not part of the manufacturing costs but is the result of the manufacturing process and is an asset on the company balance sheet.
Therefore, Indirect labor, such as the wages paid to factory maintenance staff who do not work directly on the product, is considered part of the factory overhead.