P Service Company has budgeted direct labor hours of 100 and direct labor cost per hour of $25 for data analysis personnel and budgeted direct labor hours of 50 and direct labor cost per hour of $30 for staff accountants. JP Service Company's cost of direct labor is

Respuesta :

Based on the cost rate for the direct labor of P Service Company, the cost of direct labor would be $2,500.

What is the cost of direct labor?

This is the amount that is budgeted to be paid to those that are directly involved in the provision of services by P Service company.

This includes the data analysis personnel only:

= (100 x 25)

= $2,500

In conclusion, the cost of direct labor is $2,500.

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