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Direct Labour Cost per Unit = total direct labour cost / total units produced
Wiki User
∙ 14y ago
Anonymous
Total cases produced 101,154
Total hours allotted 2854
Standard labor hour (plus FLO) 56
Standard cases per hour 60
Head count 7
Average cases per hour 35.44
Average cases less the FLO 45.07
Anonymous
Total cases produced 101,154
Total hours allotted 2854
Standard labor hour 56
Standard cases per hour 60
Head count 7
Average cases per hour 35.4
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Is a direct labor wages a prime cost?
Formula for prime cost is as follows: prime cost = direct material + direct labor So according to above mention formula yes it is prime cost because whitout labor no unit of product can be manufactured.
Is indirect labor a prime cost?
Indirect labor is that kind of labor which is not directly involved in making of unit of product that's why it is not a direct labor and that's why it is not prime cost of unit of product and that's why it is shown in overheads
What does an unfavorable direct labor price variance indicate?
Unfavorrable direct labor price variance indicates that business has incurred more direct labor cost for production of units of product then standard labor cost. For example if standard cost of direct labor for producing 1 unit is 10 and company incurred 105 for making 10 units then extra 5 is unfavorable direct labor cost variance.
What is a labor costs?
Labor Cost is the direct labor utilized to manufacture the product. For Example: 10 labor hours required to manufacture 1 unit of product and labor cost per hour is 10 so total labor cost to manufacture 1 unit is 100 (10 * 10).
Is a manufacturing plant managers salary a direct labor cost?
Manufacturing plant manager is not directly related to manufacture of unit of product that's why it is not direct labor cost instead of that it is indirect cost and goes to overhead account
How do you find the cost of direct labor?
cost of direct labor is the total cost of workers involve in production divided by normal capacity is per unit direct labor cost.
Is a direct labor wages a prime cost?
Formula for prime cost is as follows: prime cost = direct material + direct labor So according to above mention formula yes it is prime cost because whitout labor no unit of product can be manufactured.
Is indirect labor a prime cost?
Indirect labor is that kind of labor which is not directly involved in making of unit of product that's why it is not a direct labor and that's why it is not prime cost of unit of product and that's why it is shown in overheads
What does an unfavorable direct labor price variance indicate?
Unfavorrable direct labor price variance indicates that business has incurred more direct labor cost for production of units of product then standard labor cost. For example if standard cost of direct labor for producing 1 unit is 10 and company incurred 105 for making 10 units then extra 5 is unfavorable direct labor cost variance.
How to determine unit product cost for one pound of coffee at using 4.20 direct materials .30 direct labor?
add the direct material +( direct labor* time)* nO of worker
What is a labor costs?
Labor Cost is the direct labor utilized to manufacture the product. For Example: 10 labor hours required to manufacture 1 unit of product and labor cost per hour is 10 so total labor cost to manufacture 1 unit is 100 (10 * 10).
Is a manufacturing plant managers salary a direct labor cost?
Manufacturing plant manager is not directly related to manufacture of unit of product that's why it is not direct labor cost instead of that it is indirect cost and goes to overhead account
What is direct Cost per unit?
Direct cost per unit is that cost of unit incurred to manufacture one unit of product.Formula for direct cost per unit = total direct cost / total number of units.
What is direct labor and direct materials?
Direct Material: Basic material ingredient to manufacture unit of product is called direct material Direct Labor: The basic labor force which is required to make any unit of product and without which it is not possible to make unit of product is called direct labor
Why direct production labor cost might be regarded as a fixed cost rather than as variable cost?
Direct labor wages are normally Variable costs, charged directly to the Production Cost Account, what is commonly called WIP. It is commonly held that direct labor wages change proportionally to the changes of the production level. In fact, however, hourly wages are only related to a time unit, not to pieces produced. True direct wages are piece-work wages, but very few industries pay their workers by unit of production. We should have the option to treat a direct labor wage as a fixed cost, just as salary is a fixed cost. Monthly or hourly, these payment are paid by time interval, not by production unit
How to compute the cost per unit for direct materials and for conversion costs?
The unit cost for direct materials is computed by adding the materials cost in the beginning work in process inventory to the materials cost for the month divided by the total equivalent production figure.Conversion cost per unit is computed by adding direct labor and factory overhead divided by the total equivalent production figure.
What is the difference between direct unit cost and direct cost of sales?
Let's say that you are in the business of selling widgets. All the costs related to manufactureing, storing and selling one widget (referred to as a unit) would be the direct unit costs. Your direct cost of sales (also referred to as direct cost of goods or direct COGS) are all the costs related to the creation of your widgets. Your direct cost of sales may or may not be your total cost of sales. Usually this includes the cost of materials and direct labor costs, but excludes distribution and sales (the cost of getting your widgets to a retailer and get them sold).
