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 hourly labor rate To calculate the direct labor hourly rate, add up all wages, taxes, and other benefit costs for a given period. Then, divide that total by the number of hours worked in the pay period.

Detailed explanation-3: -To calculate the number, multiply the direct labor hourly rate by the number of direct labor hours required to complete one unit. As a labor cost example, if the direct labor hourly rate is $10 and it takes five hours to complete one unit, the direct labor cost per unit is $10 multiplied by five hours, or $50.