i can not calculate please help us
Overhead absorption rate is calculated with following methods: 1 - Machine hours method 2 - Direct labor cost method 3 - Direct labor hours method
direct labor cost is total wages and salaries of workers divided by production at normal capacity.
Direct labor for manufacturing = direct labor for one unit * total number of units manufactured
Using direct labor hours: Overhead rate = Total Overhead Expenses /Direct labor hours Using Machine hours: Overhead rate = Total Overhead Expenses /Machine hours
No, Direct labor price variance is created due to difference in standard labor rate and actual labor rate for example standard labor rate per unit is 10 and actual labor rate is 11 then 1 per unit is unfavourable direct labor price variance.
Overhead absorption rate is calculated with following methods: 1 - Machine hours method 2 - Direct labor cost method 3 - Direct labor hours method
Predetermined overhead rate based on direct labor cost = Budgeted overhead cost / direct labor cost / 100 Predetermined overhead rate based on direct labor cost = budgeted overhead cost / direct labor hours.
Utilization is the quotient of Direct Labor Hours / Total Labor Hours. Example - John works an 8 hour day. He logged 6 hours as direct labor on Tuesday and left when his 8 hours were up. His Utilization is 6/8 or 75%.
i can not calculate please help us
direct labor cost is total wages and salaries of workers divided by production at normal capacity.
Direct labor cost is the salaries and wages of all workers directly involved in manufacturing of goods.
Direct labor for manufacturing = direct labor for one unit * total number of units manufactured
it is direct labor plus overhead costs
Direct labor hours is the hours available of labor or people for example if a factory has 10 workers and in a week of 5 days of 8 hours then total direct labor hours available in week is (10*8*5) 400 hours while machine hours is how much a machine can work per day of 8 hours for example if machine need setup time of 2 hours per day then hours available per day is 6 and total hours per week will be 30.
Using direct labor hours: Overhead rate = Total Overhead Expenses /Direct labor hours Using Machine hours: Overhead rate = Total Overhead Expenses /Machine hours
False
Weaver Company's predetermined overhead rate is $18.00 per direct labor-hour and its direct labor wage rate is $12.00 per hour.