Question

Workers paid $15.00 per hour with an overhead charge of 1.45 and a personal time allowance of 1.15, have what total direct labor cost for an 8-hour work day?

Answer 1

$200.10 is the total direct labor cost for an 8-hour work day if a workers paid $15.00 per hour with an overhead charge of 1.45 and a personal time allowance of 1.15.

When a company incurs direct labor costs, it means that all of the expenses associated to paying employees' wages and other benefits for work that is directly relevant to the production of the company's goods or to the delivery of services are paid by the company.

Direct labor costs are the total expenses incurred by the business for paying employees' wages and other perks in exchange for work that is directly relevant to the production of the business's goods or the rendering of its services.

Direct labor cost is one of the significant components of the company’s product cost. It includes the total paid as wages or the other benefits to the company’s employees. They are related directly to the manufacturing of the company’s product or the provision of the services.

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