direct labor


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Related to direct labor: Indirect Labor

direct labor

[də′rekt ′lā·bər]
(industrial engineering)
The labor or effort actually producing goods or services.
References in periodicals archive ?
A business owner or manager should be able to track revenue, cost of goods sold and direct labor by customer by product, division, location, line of business or employee, whenever possible.
Of course, they are 100% complete as to direct materials (paper is the only material); however, they are, on average, only 50% complete as to direct labor and manufacturing overhead.
Simple recognition that the rules have changed and that managing energy usage with about the same degree of effort that management devotes to managing direct labor can produce savings of up to 10% of energy usage.
This stands in stark contrast to most advanced manufacturing facilities today, where overheads typically represent the single largest percentage of total production costs and direct labor comprises the smallest share at 10% or less.
Is this good or a possible cause of the direct materials and direct labor problem?
Phil has to decide whether to move this person to a direct labor position somewhere in the company, to another indirect labor position or to lay off that person.
Direct labor accounts for less than 20% of the cost of most manufactured products but more than 80% of all variance reporting.
It also enables risk managers and other corporate officials to expand their knowledge of company property, financial, outsourcing, and direct labor exposures, as well as current preparedness to deal with loss situations.
Although revenues grew, tight labor markets were blamed for sharp increases in both direct labor and general and administrative payroll expenses.
Market value of the company (investment) [1] $1,000,000 Return On Investment (ROI) [1] 10% Estimated costs for the year: Direct labor $ 200,000 Direct materials 300,000 Variable overhead 60,000 Fixed overhead 40,000 Variable selling/admin 30,000 Fixed selling/admin 70,000 Total cost $700,000
Overhead rates bottomed out at 144% of direct labor, a drop of over 7% from last year.
Direct labor and material are normally observed and measured by manufacturing and maintained as "standards.