Answer true or false: The average variable cost curve is U-shaped if we have first increasing marginal product of labor and then diminishing marginal product of labor. True or false? The average variable cost curve is U-shaped if we have first increasing marginal product of lab...
A. rent expense B. salary of plant manager C. direct labor costs D. straight-line depreciation expense Variable Cost: The term variable cost refers to costs that fluctuate with respect to cost-driver changes such as the ...
Etcetera. Variable labor costs are the extra servers you need for a busy Friday dinner shift. Or the extra line cook you need because of that big private party. How to Calculate Labor Cost: Labor Cost Formula There are two primary ways of calculating labor cost. You can do it as a ...
Variable cost per unit = raw materials cost / total output + direct labor cost / total output = $12,000 / 142,300 + $65,200 / 142,300 = $0.08 + $0.46 = $0.54 The total variable cost is 142,300 x $0.54 = $77,200 Therefore, if the company undertakes the order of 3,000 pack...
Direct labor.These costs can change based on increased demand or production levels, such as overtime for factory workers. Energy and utilities.Also used in the production process, the cost of utilities, such as electricity and water, may increase with production. ...
Definition:The average variable cost represents the totalvariable cost per unit, including materials and labor, in short-term production calculated by dividing total variables costs by total output. Hence, a change in the output (Q) causes a change in thevariable cost. ...
A variable cost is an expense that changes from one instance to the next, like a household's power bill. To calculate variable...
Indirect Labor Cost is the cost of labor that is not directly related to the production of goods and the performance of services, like wages paid to workers whose duties enable others to produce goods and perform services.
What is a variable cost? A variable cost is a cost that varies directly with changes in the level of production or sales volume. In other words, it’s a cost that changes in proportion to the level of activity in a business. Some examples of variable costs include direct labor costs, ...
Examples of variable costs are salescommissions, direct labor costs, cost of raw materials used in production, and utility costs. Variable costs are usually viewed as short-term costs as they can be adjusted quickly. For example, if a company is having cash flow issues, it may immediately dec...