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Direct labor is variable cost as it varies with the change in level of production of units.
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∙ 9y ago
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Is direct labor a variable cost or product cost?
Direct labor is variable cost as well as product cost but for variable cost it must vary with the change in production level otherwise it will be fixed cost.
Variable manufacturing overhead cost per direct labor hour?
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
Assuming that direct labor is a variable cost product costs under variable costing include only?
B. Direct materials, direct labor, and variable manufacturing overhead.
Is direct labor a fixed cost?
If salary or wage of direct labor workforce is fixed irrespective of number of units manufactured by them then it is fixed cost other wise it is variable cost.
Is direct labor fixed Cost?
If salary or wage of direct labor workforce is fixed irrespective of number of units manufactured by them then it is fixed cost other wise it is variable cost.
Are direct costs variable costs?
If direct labor don't change with number of units product then it is fixed cost but if it changes with the change in production units then it Is variable cost.
Direct materials plus direct labor plus variable overhead equals?
Total Manufacturing Cost
Is variable overheads include in prime cost?
Direct labor and direct materials are the components of prime cost so no other cost is part of prime cost and hence variable overheads also not included in prime cost.
Is direct material and labor a fixed cost?
If direct material and direct labor remains fixed irrespective of production volume then these are fixed costs otherwise these are variable costs and normally these are variable costs because it varies with the production volume.
What is the average direct labor cost in manufacturing?
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
Examples of variable cost and fixed cost?
Direct labor and direct material is example of variable cost which increase with each increase of unit. Factory rent is example of fixed cost which remains fixed even in change in number of units produced.
When calculating total cost do you add in variable manufacturing overhead fixed manufacturing overhead or both?
Following is the formula for total costtotal cost = fixed overheads + variable overheads + direct labor + direct material
