Question

What is the total amount of indirect factory wages if the amount allocated to product design was $200,000 and product design consumes 40% of indirect factory wages

Answer 1

The total amount of indirect factory wages is $80,000.

What is indirect factory wage?

Indirect factory wage includes all wages paid to workers who are not directly involved in production.

For example, the wages paid to workers who design products are classified as indirect costs because the workers are not directly involved in producing the units of goods and services.

Thus, the total amount of indirect factory wages is $80,000.

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