On March 1, Job 10 had a beginning balance of $500. During March, direct materials of $800 and direct labor of $300 were added to the job. Overhead is applied to production at a rate of 40% of direct labor. There are four units in Job 10. What is the unit cost? a.$312 b.$492 c.$850 d.$430
Depending on the worker's contribution to the production process, labor expenses are typically divided into direct and indirect labor costs.
While work performed on specific commodities or services is considered direct labor, employee activity that cannot be linked to or charged to the provision of goods or services is considered indirect labor.
What is direct Labour cost example?
The hourly wage of a quality assurance inspector adjusted to incorporate healthcare benefits and short-term disability is one illustration of a direct labor cost.
The annual wage of a welder who works on the production line of a business that makes steel parts could serve as another illustration.