Indirect labor

indirect labor
Usually this refers to manufacturing employees who are not classified as direct labor. Material handlers, mechanics, setup workers, clean up workers are a few examples of indirect labor.
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Indirect Labor
Workforce not directly engaged in the manufacture of a product line.
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indirect labor
labor not directly involved in production but essential to the manufacturing process, such as supervisory personnel and janitors. It is classified as part of factory overhead .
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Definitions of ’indirect labor costs’ and meaning of ’indirect labor costs’ are from the book publication, QFINANCE - The Ultimate Resource, © 2009 Bloomsbury Information Ltd.

Indirect labor
The cost of any labor that supports the production process, but which is
not directly involved in the active conversion of materials into finished products.
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The indirect labor would relate to the cost of factory staff not directly involved in production. This can include break time of line workers, shop managers, maintenance, guards, and so forth.

labor burden The overall cost consisting of all indirect labor costs incidental to operations. Also known as indirect labor. Labor Cash Earnings - Japan The average amount of pre-tax earnings per regular employee, including overtime...

Indirect labor and contract supervisory wages, including basic compensation, overtime pay, vacation and holiday pay, ...

Costs of indirect laborers, such as the cleanup crew who sweep the factory--they do not work directly on the product, but produce factory costs nonetheless.

In numerical terms, it is defined as (actual labor hours less budgeted labor hours) x hourly rate for standard variable overhead, which includes such indirect labor costs as shop foreman and security.

Indirect Labor (in accounting)
Indirect Material (in accounting)
Manufacturing Costs (in accounting)
Service Department Costs (in accounting)
Cost-Volume Formula (in accounting)
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The work in process account also collects the costs of direct and indirect labor and factory overhead. When the goods are finished, their costs are transferred (credited) out of work in process and added (debited) to the finished goods inventory.

See also: Direct labor, Expense, Factory overhead, Indirect cost, Direct costs