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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.
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.
Predetermined overhead rate = Est. total Manuf. Overhead Cost / Est. total amt of allocation base In this case, allocation base would be direct labor (as opposed to machine labor). Hope this helps
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.
direct labor is direct cost attributable to production of goods.
Direct labor budget is used for controlling purpose as it tells that how much direct labor is required for specific job to be complete.
Direct Material: Basic material ingredient to manufacture unit of product is called direct material Direct Labor: The basic labor force which is required to make any unit of product and without which it is not possible to make unit of product is called direct labor
is salesmen commission apart of direct labor
If direct labor cost creates impact or influences the decision then it is relevant cost but if direct labor is not creating influence or changing in decision then it is irrelevant cost for example direct labor cost remain same irrespective of whatever the decision then direct labor cost is also irrelevant.