In a process operation, the direct labor of a production department includes?

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A. All labor used exclusively by that department, even if the labor is not applied to the product itself.

Student Response

B. All labor used exclusively by that department, but only if the labor is applied to the product itself.

C. All labor for that department, including labor for services that help more than one production department, such as clerical, repair, and computer technicians.

D. Only labor that helps more than one production department, such as clerical, repair, and computer technicians.

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E. Only that labor that is recorded in the Factory Payroll account.

1 Answer

  • A. All labor used exclusively by that department, even if the labor is not applied to the product itself.

    <accounting for labor costs>

    in a process operation, the direct labor of a production department includes all labor used exclusively by that department. this is the case even if the labor is not applied to the product itself.

    Source(s): fundamental accounting principle textbook p813


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