normal direct labor cost
Divide the $40,000 costs by the 20,000 units produced to get your normal factory overhead cost of $2 per unit. If your actual direct materials are $5 per unit, the actual direct labor is $8 per unit and the normal factor overhead is $2 per unit, it costs you $15 to manufacture one unit.Since your normal costs remain fixed, any unusual price change is the result of higher direct materials or direct labor costs.or example, it takes $2 of direct materials and 4 labor hours at $10 per hour, or $40, to produce one completed unit at $42 per unit. The actual indirect costs are $1 per unit. Your total actual cost per unit is $43. If you produce 10,000 units, your actual manufacturing costs are 10,000 multiplied by $43, or $430,000.