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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 is the definition of labor ratios?
cost relationship between direct and indirect.
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.
What is conversion cost in cost sheet?
conversion cost = direct wages + factory overheads (indirect material + indirect wages)
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?
To calculate the direct labor cost, we first need to determine the total conversion cost. Since direct labor is 40% of the conversion cost, indirect labor must be 60%. Therefore, the total conversion cost is 60000 / 0.6 = 100000. Since direct labor is 40% of the conversion cost, direct labor cost is 100000 * 0.4 = 40000. So, the direct labor cost is $40,000.
