direct labour cost

Calls are growing for a tougher stand against direct labour costs, which amount to about $15 billion a year.

The predetermined overhead rate Cost Centre X based on direct labour cost basis:

Direct labour cost variance is the difference between the standard cost for actual production and the actual cost in production.

Moving to CAM and FMS, one expects to see a significant decrease in direct labour costs.

Fixed overhead, which is estimated to cost £10,000, irrespective of what is produced and sold, is applied at 100 per cent of direct labour cost.

Andrea Vecchiotti, the managing director of Otis, a maker of lifts and escalators, which is building a $10m plant in Penang, says that direct labour costs will be only 2% of the cost of producing a lift on the island.

Barclay Plc uses a predetermined overhead rate in applying overheads to product costs on a direct labour cost basis for cost centre X and on a machine hour basis for cost centre Y. The following details the estimated forecasts for l9X1: