Direct labor is not part of factory overhead while indirect labor is part of overhead as these labor expenses could not be calculated directly like factory supervisor salary or line manager salary etc.
Direct labor are not part of overhead costs and shown separately while indirect labor are part of overhead costs and included in overhead cost because those labor cannot be allocated separately or identifiable separately.
Would overhead include indirect materials and indirect labor?
Direct material and direct labor are the parts of prime cost while indirect labor is part of manufacturing overhead and manufacturing overhead is a part of conversion cost that's why indirect labor is not part of prime cost because it is that type of labor which is not directly identifiable with units production that;s why cannot charge directly to production units.
Maintenance is not direct labor rather it is part of factory overheads if maintenance is only for those items involve in production of goods.
Direct Materials
Direct labor are not part of overhead costs and shown separately while indirect labor are part of overhead costs and included in overhead cost because those labor cannot be allocated separately or identifiable separately.
Would overhead include indirect materials and indirect labor?
Direct material and direct labor are the parts of prime cost while indirect labor is part of manufacturing overhead and manufacturing overhead is a part of conversion cost that's why indirect labor is not part of prime cost because it is that type of labor which is not directly identifiable with units production that;s why cannot charge directly to production units.
Direct labor expense is that amount which is paid to workers who are involved in production of goods in factory and their salary or wages are part of it.
Maintenance is not direct labor rather it is part of factory overheads if maintenance is only for those items involve in production of goods.
Depreciation is not a manufacturing labor rather it is manufacturing overhead as machines used in manufacturing is not part of labor rather it is part of overhead.
yes
Direct Materials
yes factory overhead is part of income statement and shown in cost of goods sold statement as a product cost.
Indirect labor is part of overhead costs and included in total product cost.
Direct labor cost is part of prime cost as well as it is part of conversion cost as well.
Both are correct. Coversion cost = Direct Labour + Manufacturing Overhead Prime cost = Direct Labour + Direct Material SOURCE: http://highered.mcgraw-hill.com/sites/0070980829/student_view0/glossary.html