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Direct labor is direct cost as it varies with variation in production level and directly related with number of units of product.

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Q: What kind of cost is direct Labor?
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Related questions

What is the average direct labor cost in manufacturing?

Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2


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.


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.


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.


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


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.


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