Direct labor price standard
The direct labor price standard is the rate per hour that should be incurred for direct labor. This standard is based on current wage rates, adjusted for anticipated changes such as cost of living adjustments (COLAs). The price standard also generally includes employer payroll taxes and fringe benefits, such as paid holidays and vacations.
The direct labor price standard is also called the direct labor rate standard.
Category: Accounting & Auditing
Previous: ← Direct material quantity standard
More from this Section
- Preparing the Statement of Cash Flows
Companies prepare the statement of cash flows differently from the three other basic financial ... - Standard costs
... - Job cost sheet
An essential accounting record in assigning costs to jobs is a job cost sheet. A job cost ... - Net income & net loss
Net income results when revenues exceed expenses. A net loss occurs when expenses exceed ... - Compensating error
A compensating error is one which counter-balanced by any other error or errors, ...