Between January 1st and December 31st of 2021, Digby Corporation paid its employees $30.559mil. However, its Income Statement shows a direct labor expense of $31.759mil million. Which of the following statements accurately explains the difference.

Select: 1

	Direct labor cost also includes management and non-hourly salaries
	Direct labor cost is the labor component of the inventory that was sold, and may include inventory produced in prior years
	Direct labor cost also includes social security (FICA) tax
	Direct labor cost also includes training and benefits