In a factory, there are two types of labor -- direct and indirect. Direct labor are those workers on the production line whose efforts directly produce what the factory manufactures. All other workers ...

Direct labor rates include wages, taxes, and benefits directly tied to producing goods or services. Exclude indirect labor like supervisors from direct labor rate calculations. Monitoring direct labor ...

Tips You may also calculate the overhead rate based on direct labor hours. Divide the overhead costs by the direct labor hours over the same measurement period.