What would not be classified as indirect overhead?

Indirect overhead refers to costs that are not directly attributable to a specific project or service but are necessary for the general operation of a business. These costs support the entire organization rather than a single project.

Salaries for installers are typically classified as direct labor costs because their work directly pertains to the installation of fire alarm systems. This means their salaries can be directly assigned to specific projects, thus not falling under the category of indirect overhead.

On the other hand, expenses like rent for the office, salaries of corporate officers, and legal fees are considered indirect overhead since they support the overall business operations rather than a specific project. These costs help maintain the infrastructure and functionality of the business as a whole, making them necessary for ongoing operations but not tied to any single project.