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For an automotive repair shop, the wages of mechanics would be classified as direct labor cost.
Direct Labor Cost
The total expense that a company incurs for employees who directly work on manufacturing products or performing services, including wages, benefits, and payroll taxes.
Automotive Repair Shop
A business establishment dedicated to repairing and maintaining vehicles, including cars and trucks.
Wages of Mechanics
Compensation paid to mechanics for their labor, typically based on an hourly rate or salary.
- Discern the separate elements of cost involving direct materials, direct labor, and factory overhead.
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Learning Objectives
- Discern the separate elements of cost involving direct materials, direct labor, and factory overhead.
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