Compute the cost of direct labor used for the period.
Understand the Problem
The question is asking to calculate the cost of direct labor utilized during a specific time frame. This typically involves assessing the hours worked by employees directly involved in production and multiplying by their respective wage rates.
Answer
Direct labor cost = Total labor hours * Pay rate per hour
The final answer is: Direct labor cost = Total labor hours * Pay rate per hour
Answer for screen readers
The final answer is: Direct labor cost = Total labor hours * Pay rate per hour
More Information
Direct labor costs are crucial for accurately determining the cost of production and setting product prices.
Tips
A common mistake is forgetting to include all hours worked or not considering overtime rates.
Sources
- Direct Labor Cost | Formula, Calculation & Examples - Lesson - study.com
- How to Calculate Direct Labor Used - Small Business - Chron.com - smallbusiness.chron.com
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