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The cost of wages paid to workers during an accounting period on daily, weekly, monthly, or jobs basis,plus payroll and related taxes and benefits.
Thomas Lynch
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What is labor cost control procedure?
A procedure through which it is considered by keeping in view economics approach that the cost of labor does not increase its marginal product cost i.e. labor cost less than marginal cost.
Total labor cost?
The amount of money that a company pays to their direct labor employees over a certain period is considered to be total labor cost. Total labor cost is often determined for the purposes of budgeting and planning.
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.
If the Revenue for the week is 2000 and labor cost consists of two workers earning 8 per hour who work 40 hours each what is labor cost as a percentage of Revenue?
If the Revenue for the week is 2000 and labor cost consists of two workers earning 8 per hour who work 40 hours each, the labor cost as a percentage is 68%.
Which way will an increase in labor cost shift the supply curve?
An increase in labor cost will decrease supply, so the supply curve will shift left.
What do you mean by labor cost variance?
Labor cost variance means the difference between standard labor cost and actual labor cost.
What is the average direct labor cost in manufacturing?
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
When would you use direct labor as cost driver?
In labor intensive industry direct labor cost is used as cost driver.
Is labor rates and labor cost are the same thing?
Rates is cost-per-hour, labor cost is the total, regardless of time.
Is indirect labor 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.
Is direct labor cost a relevant 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.
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.
What should the relationship of material cost to labor cost be?
labor costs should be half of what the materials cost
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.
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.
Direct labor cost is a part of?
Direct labor cost is part of prime cost as well as it is part of conversion cost as well.
What is labor cost control procedure?
A procedure through which it is considered by keeping in view economics approach that the cost of labor does not increase its marginal product cost i.e. labor cost less than marginal cost.
