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A company incurs $12,000 in direct labor costs when they produce 480 units and $12,500 in direct labor costs when they produce 500 units. The direct labor cost per unit is $__________

Sagot :

The direct labor cost per unit is  $[tex]25[/tex]per unit.

Direct labor cost:

  • Wages paid to employees directly related to producing goods or rendering customer services are referred to as direct labor costs. The overall direct labor cost exceeds wages paid by a significant amount.
  • Any employee directly involved in a product's manufacturing is referred to as direct labor.
  • The overall cost of creating a product or taking part in a project includes direct labor expenditures, which are a significant component. The amount of time that employees spend on various activities must be recorded in order to determine direct labor costs. The time they invested in a project is then compounded by their hourly rate.

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Cost of direct labor per unit calculation:

Direct labor cost per unit

= total direct labor cost / unit produced

= $[tex]12,000/480[/tex] units (or) $[tex]12,500/500[/tex] units

=$ [tex]$25[/tex]per unit

Direct labor cost per unit = $[tex]25[/tex] per unit

Learn more about direct labor cost here brainly.com/question/26245657

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