Economics · Cost Accounting
A manufacturing firm pays an overtime premium to all direct workers as a general policy. However, this month, an urgent rush order requested by a specific customer required workers to complete 10 hours of overtime explicitly for that job. How should the overtime premium for this specific job be classified?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Period cost
- 2Sunk cost
- 3Indirect labor cost
- 4Direct labor cost✓
Correct answer
Direct labor cost
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