Direct Labour refers to the labor involved in the production of goods or services, specifically attributable to specific cost units such as products, services, or machinery usages.
The direct labour hour rate refers to the rate of pay per hour assigned to operators engaged in direct labour or an absorption rate used in absorption costing. It is computed by dividing the total labor cost by the total direct labor hours worked.
A detailed overview of equivalent units, explaining how unfinished units of production at the end of a period are measured and valued.
Labour hour rate refers to the cost of one hour of labour, which includes direct and indirect costs tied to the labour force.
A predetermined rate of pay for direct labour operators used for establishing standard direct labour costs in a standard costing system, providing a basis for comparison with actual direct labour rates paid.
