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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.

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Assuming that direct labor is a variable cost product costs under variable costing include only?

B. Direct materials, direct labor, and variable manufacturing overhead.


Direct labor a variable cost or semi-variable cost?

Direct labor is variable cost as it varies with the change in level of production of units.


Is direct labor a product cost or period cost?

Direct labor is a product cost because without labor no product can be produce and it has direct relation with production of goods.


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.


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


Is direct labor cost a period cost?

Direct labor is a product cost as it is required to manufacture the units of product, Direct Labor may be a period cost in that period where there is no production but management still paying the labor all salaries and wages.


The variable portion of the semi variable cost of electricity for a manufacturing plant is a conversion cost?

yes A cost that attaches to the physical units is termed a product cost. Product costs would include direct materials, direct manufacturing labor, and manufacturing overhead. Conversion cost is the cost involved in converting the direct materials into a finished product. It is composed of direct manufacturing labor and manufacturing overhead. Any cost that does not attach to the physical units would be termed a period cost and would be expensed as incurred. Therefore, a cost is either a period or a product cost. Electricity cost, whether variable or fixed, would be included in manufacturing overhead and classified as conversion costs, and therefore cannot be classified as a period cost.


Is indirect labor a variable cost?

If indirect labor change with the change of units of product then indirect labor is a variable cost. If change in the quantity of units has no impact on indirect labor cost then it is a fixed cost.


Is direct labor product cost or period cost?

Direct labor is a product cost because it varies with the variation in production volume and without this cost no product could be manufactured and directly related with the production of goods.


What kind of cost is direct Labor?

Direct labor is direct cost as it varies with variation in production level and directly related with number of units of product.


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.