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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.
When you obtain a bigger loan, your mortgage broker makes more money.
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
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