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.
It is 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.
Labor cost can be fixed as well as variable. That labor which varies with changes in level of production then it is variable cost but if labor remain fixed then it is fixed cost.
It depends on the nature of payment and work, if labor is fixed and don't have any relation with the volume of production then it is fixed otherwise it will be variable.
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.
Direct labor is variable cost as it varies with the change in level of production of units.
It is a variable cost!!
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.
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.
Labor cost can be fixed as well as variable. That labor which varies with changes in level of production then it is variable cost but if labor remain fixed then it is fixed cost.
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
Variable. Jessica Nichole Sims
B. Direct materials, direct labor, and variable manufacturing overhead.
When a firm attains minimum average variable cost, the number of units of labor it is using depends on the average product.
Variable costs not Resource
It depends on the nature of payment and work, if labor is fixed and don't have any relation with the volume of production then it is fixed otherwise it will be variable.
Total variable cost is typically the sum of all variable labor, variable materials, and variable overhead expenses.