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cost of direct labor is the total cost of workers involve in production divided by normal capacity is per unit direct labor cost.
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How do you compute predetermined overhead rate as a percentage of direct labor costs and direct labor hours?
Predetermined overhead rate based on direct labor cost = Budgeted overhead cost / direct labor cost / 100 Predetermined overhead rate based on direct labor cost = budgeted overhead cost / direct labor hours.
Is direct labor a product cost or period cost?
Direct labor is a product cost because without labor no product can be produce and it has direct relation with production of goods.
What kind of cost is direct Labor?
Direct labor is direct cost as it varies with variation in production level and directly related with number of units of product.
Abel companys manufacturing overhead is 20 percent of its total conversion costs If direct labor is 38000 and if direct material are 47000 the manufacturing overhead is?
Manufacturing Overheads = 20% of Conversion CostTotal Conversion Cost = ?Total Conversion Cost = Direct Labor + Manufacturing Overheads100% = 80% + 20%Total Conversion Cost = direct labor * 100/80Direct labor = 38000Total Conversion Cost = 38000 * 100/80Total Conversion Cost = 47500Manufacturing Cost = Total Conversion Cost - Direct LaborManufacturing Cost = 47500 - 38000Manufactruring Cost = 9500
What is the direct labor cost if a company's direct labor is 40 percent of its conversion cost and the manufacturing overhead cost for the last period was 60000 and the direct materials cost was 30000?
60000 + 30000 = 90000 = 60% / 60 = 1500 = 1% x 100 = 150000 = 100% X .4 = 60000 The above solution is incorrect. By definition, the conversion cost is the sum of the direct labor cost and the overhead. Therefore, if we assume x is the conversion cost, then x = 0.4x + 60,000. The solution is conversion cost = 100,000. Hence, the direct labor cost = 40,000. Note that the knowing the direct material cost is not necessary for the computation of the labor cost. I am really bad at math so i just have to think you are right on this one
What is the average direct labor cost in manufacturing?
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
How do you find direct labor cost?
Direct labor cost is the total cost of salaries and wages paid to workers / number of units to be manufactured for normal capacity
What type of cost is direct labor?
direct labor is direct cost attributable to production of goods.
Is direct labor cost a relevant cost?
If direct labor cost creates impact or influences the decision then it is relevant cost but if direct labor is not creating influence or changing in decision then it is irrelevant cost for example direct labor cost remain same irrespective of whatever the decision then direct labor cost is also irrelevant.
How do you compute predetermined overhead rate as a percentage of direct labor costs and direct labor hours?
Predetermined overhead rate based on direct labor cost = Budgeted overhead cost / direct labor cost / 100 Predetermined overhead rate based on direct labor cost = budgeted overhead cost / direct labor hours.
When would you use direct labor as cost driver?
In labor intensive industry direct labor cost is used as cost driver.
Is direct labor a product cost or period cost?
Direct labor is a product cost because without labor no product can be produce and it has direct relation with production of goods.
Direct labor cost is a part of?
Direct labor cost is part of prime cost as well as it is part of conversion cost as well.
Is direct labor cost a period cost?
Direct labor is a product cost as it is required to manufacture the units of product, Direct Labor may be a period cost in that period where there is no production but management still paying the labor all salaries and wages.
How prime cost is different from conversion cost and Manufacturing Costs?
Prime cost basically is the cost of direct labor and cost of direct material; whereas conversion costs is Overhead cost and direct labor cost.
What is other direct cost?
Other direct cost is direct cost other than direct material and direct labor which is prime cost of production.
Does prime cost plus conversion cost equal the cost of manufacturing?
Total Manufacturing Cost = Direct Material + Direct Labor + Factory Overheads Prime Cost = Direct material + Direct Labor Conversion Cost = Direct Labor + Factory Overhead So yes prime cost and conversion cost is equal to total manufacturing cost
