Direct Labor Costs Calculator

Formula

To calculate the Direct Labor Costs ($DLC$):

\[ DLC = TH \times HR + T + B \]

Where:

$DLC$ is the Direct Labor Costs
$TH$ is the Total Hours Worked
$HR$ is the Hourly Rate
$T$ is the Taxes Paid during the time period
$B$ are the Benefits Paid during the time period

Direct Labor Costs Definition

Direct labor costs are defined as the cost of labor that goes directly into the production or manufacturing of a good. These include the wages, taxes, and benefits paid to the employees that directly worked on the product over a time period.

Example Calculation 1

Let's assume the following values:

Total Hours Worked ($TH$) = 100 hours
Hourly Rate ($HR$) = $20/hour
Taxes Paid ($T$) = $300
Benefits Paid ($B$) = $200

Using the formula:

\[ DLC = 100 \times 20 + 300 + 200 = 2500 \]

The Direct Labor Costs are $2500.

Example Calculation 2

Let's assume the following values:

Total Hours Worked ($TH$) = 150 hours
Hourly Rate ($HR$) = $25/hour
Taxes Paid ($T$) = $400
Benefits Paid ($B$) = $300

Using the formula:

\[ DLC = 150 \times 25 + 400 + 300 = 4450 \]

The Direct Labor Costs are $4450.