how to calculate cost of direct labor per hour
Divide the full amount paid for direct labor by the full amount for direct labor hours. Keeping with the example, say you paid $108,000 for direct labor. Divide this amount by the 8,000 direct labor hours worked. The amount of the actual rate per direct labor hour is $13.50.owever, if you just paid a lump sum for the direct labor costs, you can find the actual direct labor rate by dividing the total amount paid by the actual hours worked. Step 1. Write down the full amount of the direct labor.
For example, if the direct labor hourly rate is $10 and it takes five hours to complete one unit, the direct labor cost per unit is $10 multiplied by five hours, or $50. Direct Labor Cost Variance. The direct labor cost variance lets you identify when costs exceed the tolerance range.irect labor hours, also known as the direct labor efficiency standard, is the number of direct labor hours it takes to produce one finished item. If you produce goods in batches, you must calculate per unit direct labor hours.