A food processing factory fills cans with vegetables. The filled cans are then sold to shops.
Which wages are direct labour costs for the factory?
1 wages paid to workers who load the cans on to lorries for delivery to shops
2 wages paid to workers who operate machines that fill the cans with vegetables
3 wages paid to people working on the maintenance of the machinery in the factory
4 wages paid to people working on the assembly line putting labels on the cans

Q: What topic does this question test?

This question tests The fundamentals of accounting in O-Level Accounting (syllabus code 7707). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge O-Level Accounting Oct/Nov 2022 examination, Paper 1 Variant 3 (7707_w22_qp_13.pdf).

Question

A food processing factory fills cans with vegetables. The filled cans are then sold to shops.
Which wages are direct labour costs for the factory?
1 wages paid to workers who load the cans on to lorries for delivery to shops
2 wages paid to workers who operate machines that fill the cans with vegetables
3 wages paid to people working on the maintenance of the machinery in the factory
4 wages paid to people working on the assembly line putting labels on the cans

Oracle Prep · Accepted Answer

The correct answer is D: 2 and 4 only.

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