Direct labor which do not vary with level of production is fixed direct labor while labor vary with change in production is variable direct labor.

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

Direct labor is labor that directly interacts with customers in the service industry. For instance, waitresses are considered direct labor.

Direct material is material that is contained in the final product. Direct labor is labor that ultimately forms the final product.

Direct labor budget tells the management that how much direct labor is required to finish the production of units.