direct labour rate

soadh · #1 Mar 20, 2007, 06:42 AM

how do you calculated the direct labour hour rate per unit,, i'm given the direct labour £ 300,000 and total budgeted direct labour hours is 30,000 hours,, budgeted units produced is 400

bunnyKutty · Mar 21, 2007, 04:02 AM

Direct Labour cost = 300,000
Direct labour hours = 30,000
Budgeted units = 400

Direct labour hour rate per unit = Direct labour cost/(Direct labour hours * budgeted units)
= 300,000/(30,000 * 400)
= 0.025 per hour per unit



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