It depends on the contract or terms of job letter if break allowed in one hour then it will be included otherwise per hour will be excluding the break time and workers has to complete hours after adjusting the 15 minutes break.
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
Formula for prime cost = direct material + direct laborFormula for conversion cost = direct labor + manufacturing overheads
20
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
Salaries and wages of workers directly involve in goods manufacturing is direct labor cost.
Direct labor cost is the salaries and wages of all workers directly involved in manufacturing of goods.
Direct labor cost is the salaries and wages of all workers directly involved in manufacturing of goods.
false, direct labor and manufacturing overhead = conversion cost
Total Manufacturing Cost
Direct labor cost is that labor which directly related with manufacturing of products like machine workers etc while indirect labor cost is that labor cost which directly not manufacturing product but required as well like line mangers or factory supervisors salary etc.
B. Direct materials, direct labor, and variable manufacturing overhead.
Variable manufacturing overhead cost per direct labor hour means the variable overhead cost spent for one single labor hour and formula is as follows:Variable overhead cost per labor hour = total variable overhead cost / Total direct labor hours