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Is indirect labor a prime cost?
Indirect labor is that kind of labor which is not directly involved in making of unit of product that's why it is not a direct labor and that's why it is not prime cost of unit of product and that's why it is shown in overheads
What is direct labor and direct materials?
Direct Material: Basic material ingredient to manufacture unit of product is called direct material Direct Labor: The basic labor force which is required to make any unit of product and without which it is not possible to make unit of product is called direct labor
What is a labor costs?
Labor Cost is the direct labor utilized to manufacture the product. For Example: 10 labor hours required to manufacture 1 unit of product and labor cost per hour is 10 so total labor cost to manufacture 1 unit is 100 (10 * 10).
Why is labor a variable cost?
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.
Will the direct labor price variance always be unfavorable if more hours are worked than the standard hours allowed for the actual output attained?
No, Direct labor price variance is created due to difference in standard labor rate and actual labor rate for example standard labor rate per unit is 10 and actual labor rate is 11 then 1 per unit is unfavourable direct labor price variance.
Is indirect labor a prime cost?
Indirect labor is that kind of labor which is not directly involved in making of unit of product that's why it is not a direct labor and that's why it is not prime cost of unit of product and that's why it is shown in overheads
What is direct labor and direct materials?
Direct Material: Basic material ingredient to manufacture unit of product is called direct material Direct Labor: The basic labor force which is required to make any unit of product and without which it is not possible to make unit of product is called direct labor
What is a labor costs?
Labor Cost is the direct labor utilized to manufacture the product. For Example: 10 labor hours required to manufacture 1 unit of product and labor cost per hour is 10 so total labor cost to manufacture 1 unit is 100 (10 * 10).
What are unit of good x if 40unit of labor were used to produce goodx and given that QX equals 3LX?
If Qx = 3 Lx, it means one unit of labor is used to produce one unit of good. Therefore, if the no. of labor is 40, then Quantity produced will be 3*40 = 120.
How do you compute direct labor hours per unit?
To compute direct labor hours per unit, start by determining the total direct labor hours used in production over a specific period. Next, divide this total by the number of units produced during the same period. The formula is: Direct Labor Hours per Unit = Total Direct Labor Hours / Total Units Produced. This calculation provides insight into labor efficiency and helps in cost analysis.
Why is labor a variable cost?
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.
Paying an above-equilibrium wage rate might reduce unit labor costs by?
increasing the supply of labor
Will the direct labor price variance always be unfavorable if more hours are worked than the standard hours allowed for the actual output attained?
No, Direct labor price variance is created due to difference in standard labor rate and actual labor rate for example standard labor rate per unit is 10 and actual labor rate is 11 then 1 per unit is unfavourable direct labor price variance.
What is the definition of marginal output of labor?
The change in output that results from employing an added unit of labor (hiring 1 extra person).
What is direct labor hour rate?
Direct labor hour rate is the per hour wage rate paid to skilled or unskilled labor to make one unit of product.
How do you find the cost of direct labor?
cost of direct labor is the total cost of workers involve in production divided by normal capacity is per unit direct labor cost.
Is labor a fixed cost?
Labor costs are fixed with respect to the price of each unit. This is because it takes the same amount of time to produce each identical unit. However, in the bigger picture labor is a variable cost. You cannot be certain how many hours people are going to work until after they do.
