ECONOMICS

Detailed explanation-1: -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-2: -Calculate the direct labor hourly rate The hourly rate is obtained by dividing the value of fringe benefits and payroll taxes by the number of hours worked in the specific payroll period.

Detailed explanation-3: -To calculate variable costs, multiply what it costs to make one unit of your product by the total number of products you’ve created. This formula looks like this: Total Variable Costs = Cost Per Unit x Total Number of Units.

Detailed explanation-4: -Total Manufacturing Costs (TMC) = Direct Materials + Direct Labor + Manufacturing Overheads. It takes much more than knowing the formula to calculate total manufacturing costs correctly. This article will look at total manufacturing costs, calculate their parts, and reduce some charges in a business.