A company incurs $12,000 in direct labor costs when they produce 480 units and $12,500 in direct labor costs when they produce 5
1 answer:
The direct labor cost per unit is $per unit.
Direct labor cost:
- Wages paid to employees directly related to producing goods or rendering customer services are referred to as direct labor costs. The overall direct labor cost exceeds wages paid by a significant amount.
- Any employee directly involved in a product's manufacturing is referred to as direct labor.
- The overall cost of creating a product or taking part in a project includes direct labor expenditures, which are a significant component. The amount of time that employees spend on various activities must be recorded in order to determine direct labor costs. The time they invested in a project is then compounded by their hourly rate.
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Cost of direct labor per unit calculation:
Direct labor cost per unit
= total direct labor cost / unit produced
= $ units (or) $
units
=$ per unit
Direct labor cost per unit = $ per unit
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