In companies that have "no lay-off" policies, the total direct labor cost for a budget period is computed by multiplying the total direct labor hours needed to make the budgeted output of completed units by the direct labor wage rate.

Question

Quizplus · Accepted Answer

In companies with "no lay-off" policies, the total direct labor cost includes not only the labor hours needed for production but also the cost of idle time, as employees are retained even when not actively working on production.

In Companies That Have "No Lay-Off" Policies, the Total Direct