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.
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
direct labor is direct cost attributable to production of goods.
Direct labor cost is part of prime cost as well as it is part of conversion cost as well.
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.
Prime cost basically is the cost of direct labor and cost of direct material; whereas conversion costs is Overhead cost and direct labor cost.
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
direct labor is direct cost attributable to production of goods.
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.
cost of direct labor is the total cost of workers involve in production divided by normal capacity is per unit direct labor cost.
In labor intensive industry direct labor cost is used as cost driver.
Direct labor is a product cost because without labor no product can be produce and it has direct relation with production of goods.
Direct labor cost is part of prime cost as well as it is part of conversion cost as well.
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.
Prime cost basically is the cost of direct labor and cost of direct material; whereas conversion costs is Overhead cost and direct labor cost.
Other direct cost is direct cost other than direct material and direct labor which is prime cost of production.
Total Manufacturing Cost = Direct Material + Direct Labor + Factory Overheads Prime Cost = Direct material + Direct Labor Conversion Cost = Direct Labor + Factory Overhead So yes prime cost and conversion cost is equal to total manufacturing cost
Direct labor is variable cost as it varies with the change in level of production of units.