In terms of costing, where does labour cost stands?

Direct manufacturing labour cost is the total cost of labourers who work directly on goods being manufactured.
We can calculate this cost by identifying direct labourers and computing their wages.
Direct laborers are workers who directly perform work on the product being produced.
I'll explain you by giving an example. It is calculated in three steps as follows-


Step 1

Determine which workers are considered direct labourers. Direct labourers are workers who directly perform work on the product being produced. For example, in an automotive factory, the person puts the wheels on the car is a direct labourer, but the person who sweeps the floors is not.

Step 2

Add up the total hours that all direct labourers work in the period in question. If you had four direct labourers, who worked 400, 300, 200 and 500 hours, you would add these hours up to get 1,400 hours.

Step 3

Multiply the number of hours by the labour rate. This will give you the total direct manufacturing costs. Assuming that the wage rate was $10 per hour, you would multiply it by 1,400 -- the number of hours in this example -- to get total direct manufacturing labour costs of $14,000.

Hope u get it now.