Talking to his manager, the new cost accountant said, "For every worker that spends an hour working, we pay a wage and we incur an additional cost for fringe benefits. We know the amount of fringe benefit cost, so if people work directly on a product, the cost of their fringe benefits should be treated as a direct product cost just as their wage." The manager replied, "We always treated fringe benefits as manufacturing overhead, so it must be the right way to do it." Comment on the two treatments, giving reasons for each.