If labor costs are 60 percent of production costs, then a 15 percent increase in wage rates would increase production costs by:_

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2 years ago

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nydimaria [60] · Answer 1 · 2023-12-11T01:03:48+03:00

If labor costs are 60 percent of production costs, then a 15 percent increase in wage rates would increase production costs by <u>9 percent.</u>

<h3>What are labor costs?</h3>

The total of all employee wages, employee benefits, and payroll taxes paid by an employer constitutes the labor costs. Direct and indirect (overhead) labor costs are separated.
While indirect costs are related to labor costs, such as personnel who maintain industrial equipment, direct costs include wages for the employees who make a product, including those on an assembly line.
While indirect costs are related to support labor, such as personnel who maintain industrial equipment, direct costs include wages for the employees who make a product, including those on an assembly line.
The price of goods or services may fluctuate away from their genuine cost if labor costs are poorly allocated or evaluated, which could hurt earnings.

To learn more about labor costs with the given link

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