Question

Flare Co. manufactures textiles. Among Flare's 2016 manufacturing costs were the following salaries and wages: Loom operators $ 129,000 Factory foremen 54,000 Machine mechanics 39,000 What was the amount of Flare's 2016 indirect labor

Answer 1

Answer: $93,000

Explanation:

Flare Co. manufactures textiles. As such the direct labour should be those directly involved in the Manufacturing of these textiles and all others will be considered Indirect Labour.

Looming refers to the weaving of fabric meaning therefore that it is directly related to the Manufacturing of textiles.

Factory Foremen only supervise the activities of the factory and so are not directly involved and Machine Mechanics ensure that machines are running smoothly and so are not directly involved either.

Indirect labor for 2016 is therefore,

= Factory Foremen + Machine Mechanics

= 54,000+ 39,000

= $93,000