Assignment Of Wages Foreman In Cost Sheet
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FAQ
Examples of direct costs are direct labor, direct materials, commissions, piece rate wages, and manufacturing supplies. Examples of indirect costs are production supervision salaries, quality control costs, insurance, and depreciation.
Answer and Explanation: Correct answer: True, A factory foreman's salary is classified as Manufacturing overhead.
Indirect costs apply to more the just one business activity. By that, it means that it cannot be assigned to a specific product, service, or business activity. Common examples include rent, the cost of utilities, salaries and wages of employees not directly involved in the manufacturing of a product, etc.
Examples of direct costs are direct labor, direct materials, commissions, piece rate wages, and manufacturing supplies. Examples of indirect costs are production supervision salaries, quality control costs, insurance, and depreciation.
Production overhead includes such items as factory supplies and materials that are used in the production process, supervisors' salaries, maintenance and repairs of machinery, and utilities.
