BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The labor cost per unit is obtained by multiplying the direct labor hourly rate by the time required to complete one unit of a product. For example, if the hourly rate is $16.75, and it takes 0.1 hours to manufacture one unit of a product, the direct labor cost per unit equals $1.68 ($16.75 x 0.1).

Detailed explanation-2: -The direct labor cost formula is a simple equation for determining direct labor cost. The pay rate multiplied by the time spent working on the project yields the direct labor cost, or Direct Labor Cost= Pay Rate * Project Time.

Detailed explanation-3: -Allocate Overhead Costs Apply the overhead by multiplying the overhead allocation rate by the number of direct labor hours needed to make each product. If product X requires 50 hours, you must allocate $166.5 worth of overhead (50 hours x $3.33) to this product.

Detailed explanation-4: -Understanding the Direct Materials Cost Formula The following formula can calculate the cost: Beginning Materials + Costs of Materials Purchased-Ending Materials = Direct Material Used.