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Any process that changes an aspect of the manufactured component. Examples: forming, cutting, shaping, washing, packaging, joining, welding, plating, curing, drying, etc.
By inverse any process that does not change an aspect of the component is waste or indirect. Examples: inspection, transportation, weighing, testing, administration, management etc.
What else can I help you with?
Manufacturing overhead combined with direct labor forms prime costs?
Formula for prime cost = direct material + direct laborFormula for conversion cost = direct labor + manufacturing overheads
How do you calculate beginning work in process inventory?
beginning work in process + requisted for manufacturing ( direct material + direct labor + man. overhead ) = cost of goods completed + ending work in process
What is the predetermined manufacturing overhead rate with given info Table Top 1700 Table Leg 500 Drawer 370 Assume a 35 per hour wage rate to the assembly employees The company uses a job order cost?
To calculate the predetermined manufacturing overhead rate, you first need to determine the total estimated overhead costs and the total estimated direct labor hours. Assuming the total costs for Table Top, Table Leg, and Drawer are $1,700, $500, and $370 respectively, the total estimated overhead would be $2,570. If you know the total direct labor hours needed for production, you can divide the total estimated overhead by those hours. For example, if the total direct labor hours is 100 hours, the predetermined manufacturing overhead rate would be $2,570 / 100 = $25.70 per hour.
What should be the ratio between direct and indirect manpower in different industries and sectors?
The ideal ratio of direct to indirect manpower varies significantly across industries. In manufacturing, a common ratio might be 70:30, with more emphasis on direct labor due to production needs. Conversely, in sectors like IT or consulting, the ratio could be closer to 50:50, as indirect roles such as management and support are crucial for project success. Ultimately, the optimal balance depends on the specific operational demands and business model of each sector.
What is a labor agent?
A labor agent might be a person who makes sure that a company has enough labor to complete the job at hand. A labor agent might also be a person who deals with a particular union for an industry.
What is direct labor in service industry?
Direct labor is labor that directly interacts with customers in the service industry. For instance, waitresses are considered direct labor.
Are the amounts paid to factory repair and maintenance employees considered direct labor?
yes
What is the differences between Fixed Direct labor with variable direct labor?
Direct labor which do not vary with level of production is fixed direct labor while labor vary with change in production is variable direct labor.
What is the average direct labor cost in manufacturing?
Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2
What is direct material and direct labor?
Direct material is material that is contained in the final product. Direct labor is labor that ultimately forms the final product.
What is a direct labor budget?
Direct labor budget tells the management that how much direct labor is required to finish the production of units.
What type of cost is direct labor?
direct labor is direct cost attributable to production of goods.
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.
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.
What budget provides the starting point for preparation of the direct labor cost budget?
The direct labor cost budget typically starts with the sales budget, as it outlines the anticipated sales volume and revenue. From the sales budget, management can estimate the production requirements needed to meet demand, which then informs the direct labor needs based on the labor hours required per unit of production. Additionally, historical data on labor efficiency and wage rates may also be considered to finalize the direct labor cost budget.
Is a factory foreman included in direct labor?
A factory foreman is typically not classified as direct labor. Direct labor refers to the workers directly involved in the production of goods, such as assembly line workers or machine operators. Instead, a foreman is usually considered part of indirect labor, as their role focuses on supervising and coordinating the workforce rather than directly contributing to the physical production process.
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
