Direct labor is the work performed by the laborers on a product. The product cost is divided into two types of costs; direct cost and indirect cost. The direct cost includes material costs and labor costs. Labor is an integral part of any business. In a production set up the direct labor is the crew or workers that do the work such as operating machines.
In a service-oriented business, like a motor vehicle repair shop, all the work is performed by qualified mechanics. This is an example of direct labor in a service organization.
Sweeten Company had no jobs in progress at the beginning of March
This Excel worksheet relates to the Dickson Company example that is summarized
Novus Engine Shop uses a job order cost system to determine the
Sharp Company manufactures a product for which the following standards have been
TufStuff, Inc., sells a wide range of drums, bins
Fickel Company has two manufacturing departments—Assembly and Testing & Packaging
Silven Industries, which manufactures and sells a highly successful line of
Becton Labs, Inc., produces various chemical compounds for industrial use
Refer to QS 10-1 and QS 10-2.
Braverman Company has two manufacturing departments—Finishing and Fabrication. The
