The traditional treatment, on the other hand, did not highlight this distinction because it assumed that direct labor
was piece-rate, and, hence, the cost of resources available was automatically equal to the cost of resources used.
During each month of 1988, MDT made a record of the monthly total of direct labor
dollars and actual overhead costs in dollars.
Jupiter is a typical manufacturing company, with approximately 60% of its product costs in direct materials, 10% in direct labor
and 30% in overhead.
In the past, system X was a good buy if you could eliminate enough direct labor
in the process to pay for it.
For instance, overhead might be closely related to machine hours used, material cost or direct labor
and could be expressed as "$5 per machine hour.
Market orders for the management of by products other than sludge from wastewater systems direct labor
Profit is the remaining earnings after overhead and direct labor
expenses are paid.
We calculated Bob's direct labor
variances in a new Cost Variances tab that we added to our Master Budget spreadsheet.
Also used to, reduce direct labor
input in the new cell is a self-designed monorail system that carries each casting from shakeout through cooling to cleaning.
We now track product cost by measuring the cost drivers rather than by allocating volume-based relationships such as direct labor
This criterion is most useful for variable costs like direct labor
in an accounting or a law firm.