Which of the following is classified as a direct labor cost?

Wages of assembly-line workers Wages of a factory supervisor

A) No No

B) Yes Yes

C) No Yes

D) Yes No

D) Yes No

Explanation:

The direct labor cost is that cost which is directly related to the production process of the product. It involves direct material cost too.

So, we can say

Direct cost = Direct material cost + Direct labor cost

The wages of assembly-line workers are a direct cost and the Wages of a factory supervisor is an indirect cost that comes under the manufacturing overhead cost.