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Maintenance is not direct labor rather it is part of factory overheads if maintenance is only for those items involve in production of goods.
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∙ 9y ago
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Are the amounts paid to factory repair and maintenance employees considered direct labor?
yes
What is the differences between Fixed Direct labor with variable direct labor?
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.
What is the average direct labor cost in manufacturing?
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
What is direct labor in service industry?
Direct labor is labor that directly interacts with customers in the service industry. For instance, waitresses are considered direct labor.
What is direct material and direct labor?
Direct material is material that is contained in the final product. Direct labor is labor that ultimately forms the final product.
Are the amounts paid to factory repair and maintenance employees considered direct labor?
yes
What is the differences between Fixed Direct labor with variable direct labor?
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.
What is the average direct labor cost in manufacturing?
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
What is direct labor in service industry?
Direct labor is labor that directly interacts with customers in the service industry. For instance, waitresses are considered direct labor.
What is direct material and direct labor?
Direct material is material that is contained in the final product. Direct labor is labor that ultimately forms the final product.
What is a direct labor budget?
Direct labor budget tells the management that how much direct labor is required to finish the production of units.
What type of cost is direct labor?
direct labor is direct cost attributable to production of goods.
How do you compute predetermined overhead rate as a percentage of direct labor costs and direct labor hours?
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.
What are costs that are associated with the operation of manufacturing but are not direct labor or direct materials?
Facilities Expenses - Rent, Utilities, Maintenance, InsuranceEquipment Expenses - Maintenance and Repair, DepreciationSelling Expenses such as AdvertisingOperating Expenses such as Telephone, Office Expense and Indirect LaborCosts that add no value to product such as Shipping, Warehousing, and Quality Control
Discuss what has happened in recent industrial history to reduce the usefulness of direct labor as the primary basis for allocating overhead to products?
Advances in computerized systems, technological innovation, global competition, and automation have changed the manufacturing environment. The amount of direct labor used in many industries has greatly decreased, and total overhead costs resulting from depreciation on expensive equipment and machinery, utilities, repairs, and maintenance have significantly increased. When there is not a correlation between direct labor and overhead, it is inappropriate to use predetermined overhead rates based on direct labor.
Direct cost vs indirect cost?
Direct cost is that cost which is directly attributable to units of product like raw material and labor while indirect cost is not directly attributable like factory maintenance cost.
What is direct labor budget used for?
Direct labor budget is used for controlling purpose as it tells that how much direct labor is required for specific job to be complete.
