Direct labor cost is a part of wage-bill or payroll that can be specifically and consistently assigned to or associated with the manufacture of a product, a particular work order, or provision of a service also, we can say also it is the cost

Cost

In production, research, retail, and accounting, a cost is the value of money that has been used up to produce something, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this...

 of the work done by those worker who actually make the product on the production line

Production line

A production line is a set of sequential operations established in a factory whereby materials are put through a refining process to produce an end-product that is suitable for onward consumption; or components are assembled to make a finished article....

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Determination of the direct labor cost

• Planning the work to be performed.
• Describing the job content of the work, by indicating the skill, knowledge, etc.
• Matching the jobs with the employees.

Calculation of direct labor cost

In the direct labor cost we need to have the job time and wage we will pay it to the worker to can calculate the direct labor cost as in this formulation :-

The wage

The wage is the payment rendered to the worker per hour as a compensation for the work done.

Calculating job time

The job time needs to be measured by one of the following ways:

1. time study
   Time and motion study
   A time and motion study is a business efficiency technique combining the Time Study work of Frederick Winslow Taylor with the Motion Study work of Frank and Lillian Gilbreth . It is a major part of scientific management...
   
   
2. work sampling
   Work sampling
   Work Sampling is the statistical technique for determining the proportion of time spent by workers in various defined categories of activity...