The direct labor cost includes the wages and fringe benefits of the direct labor employees and the cost of the temporary staff that are working directly on the manufacturer’s products. The direct labor cost is classified as the following: A product cost (along with the costs of the direct ...
Largely the balance depends on the overall cost of labor compared with the cost of automation. If labor costs increase drastically because of union strike perhaps, the company is more likely to invest in automation to lower its direct labor costs over time. If direct labor expenses are at a ...
For example, hair stylists at a salon who perform haircuts and other services are considered direct labor while the maintenance staff and the receptionist who support them are indirect labor. BasisDirect Labor CostIndirect Labor Cost MeaningThe cost which is directly involved in the productionNot in...
“Labor” isdefined asthe total amount of expertise and workforce needed to finish a job, and it is further broken into two main categories: direct and indirect labor. Direct Direct laboris easy to understand and identify. Very simply, it’s the wages you pay employees. However, these expen...
production of a car or truck would be classified as direct costs. However, an indirect cost would be the electricity for the manufacturing plant. Although the electricity expense can be tied to the facility, it can't be directly tied to a specific unit and is, therefore, classified as ...
What is the difference between a flexible and a static budget? What are direct expenses? What should be considered in preparing a sales budget? How does a flexible budget differ from a static budget? When to say it's favourable for the difference between actual and flexible budgets?
Pane Company’s direct labor costs for April are as follows: What is Pane’s direct labor rate variance? A. 44,496 unfavorable. B. 49,440 unfavorable. C. 49,440 favorable. D. 50,400 favorable.相关知识点: 试题来源: 解析 B 略
Even if you’re not paying someone else to do payroll for you, it’s still considered a business expense. This is because your employees’ wages and your share of payroll taxes cut into your profit margin. And if business slows down, you may be faced with the difficult decision of delayi...
Your direct costs are the expenses directly attributable to the production of products, and they differ from indirect costs like overhead.
Answer (B) is correct . The direct labor rate variance is determined by multiplying the actual hours worked by the difference between the standard and actual rates. The standard ? rate equals the direct labor efficiency variance divided by the difference between the standard and actual hours. The...