How to determine product costing for manufacturing company

Product Cost Determination



Step 2: Determine the direct labour cost:
Direct labour cost is the cost of labour required to produce a product. To determine the direct labour cost, you need to identify the number of labour hours required to produce the product and the cost per hour of each laborer. Once you have identified the labour hours required, multiply it by the cost per hour of each laborer.
Direct labour cost = Labour hours required X Cost per hour of labour

Labour Capacity: Credit Google

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