i think what its saying is that all restatrant must have a set gct of 22-24gct.
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
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.
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.
Labor cost is variable cost because labor is paid for every single unit of product is made. For example if labor cost for making 1 unit is 10 then making 10 units will be 100 so as much as production level changing labor cost changing that;s why it is variable cost.
Direct labor cost is part of prime cost as well as it is part of conversion cost as well.
Main determinants of labour demand are: demand for goods,availability of capital and cost of labour. Main determinants of labour supply are: wages and benefits, population size(demographic factors) and job requirements
The primary determinants of agricultural productivity would be farm size, age, the weather and labor costs. Output is also considered a determinate.
Land natural resources
(1. Demand for output (2. Productivity of Labor a.Quality of labor b.Technological progress c.Non-labor outputs (3. Price of other resources(Substitutes and complements)
Labor cost variance means the difference between standard labor cost and actual labor cost.
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
In labor intensive industry direct labor cost is used as cost driver.
Rates is cost-per-hour, labor cost is the total, regardless of time.
What is a Motivants and Determinants
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.
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.
cost of direct labor is the total cost of workers involve in production divided by normal capacity is per unit direct labor cost.