The standard cost of direct labour is computed as the standard price per labour hour multiplied by the standard labour hours per unit of output.

Question

Quizplus · Accepted Answer

The standard cost of direct labor is indeed calculated by multiplying the standard price (or rate) per labor hour by the standard hours expected to be needed to produce one unit of output. This approach helps in budgeting and variance analysis.

The Standard Cost of Direct Labour Is Computed as the Standard