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Q: Direct labor cost is an example of a period cost?
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Is direct labor cost a period cost?

Direct labor is a product cost as it is required to manufacture the units of product, Direct Labor may be a period cost in that period where there is no production but management still paying the labor all salaries and wages.


Is direct labor a product cost or period cost?

Direct labor is a product cost because without labor no product can be produce and it has direct relation with production of goods.


Is direct labor cost a relevant cost?

If direct labor cost creates impact or influences the decision then it is relevant cost but if direct labor is not creating influence or changing in decision then it is irrelevant cost for example direct labor cost remain same irrespective of whatever the decision then direct labor cost is also irrelevant.


What is the average direct labor cost in manufacturing?

Average direct labor cost is the opening direct labor cost + closing direct labor cost / 2


Is direct labor product cost or period cost?

Direct labor is a product cost because it varies with the variation in production volume and without this cost no product could be manufactured and directly related with the production of goods.


What does an unfavorable direct labor price variance indicate?

Unfavorrable direct labor price variance indicates that business has incurred more direct labor cost for production of units of product then standard labor cost. For example if standard cost of direct labor for producing 1 unit is 10 and company incurred 105 for making 10 units then extra 5 is unfavorable direct labor cost variance.


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.


How do you find the cost of direct labor?

cost of direct labor is the total cost of workers involve in production divided by normal capacity is per unit direct labor cost.


When would you use direct labor as cost driver?

In labor intensive industry direct labor cost is used as cost driver.


What is an example of direct labor cost for an airplane manufacturer a. cost of oil lubricants for factory machinery b.cost of wages of assemble worker c. salary of plant superviso?

B) Cost of wages of assembly worker is a direct labor cost.