Question

Would a foreman's salary be considered direct labor if the foreman works directly in the factory?

Answer 1

Answer:

Direct labours are those employees or worker who is engaged directly in the manufacturing or production of goods or fulfilling a specific service.

Direct labour expenses are those expenses which are incurred to the workforce engaged directly in the manufacturing or production of goods or providing specific services.

For example Wages & salary paid to the worker.

If the workmen are engaged in the factory & getting salary it would be considered as direct labour & they are directly involved in assigning the duties & responsible for monitoring the progress of work done by workers,

Accordingly, foreman's salary will be considered as direct labor if the foreman works directly in the factory.