Accessibility Menu
Arrow-Thin-Down
S&P 500
6,771.55
-1.2%
-80.42
Arrow-Thin-Down
DJI
47,085.24
-0.5%
-251.44
Arrow-Thin-Down
NASDAQ
23,348.64
-2.0%
-486.09
Arrow-Thin-Down
Bitcoin
$101,529.00
-2.2%
-$2,270.02
Arrow-Thin-Down
AAPL
$270.04
+0.4%
+$0.99
Arrow-Thin-Down
AMZN
$249.32
-1.8%
-$4.68
Arrow-Thin-Down
GOOG
$278.06
-2.1%
-$6.06
Arrow-Thin-Down
META
$627.40
-1.6%
-$10.31
Arrow-Thin-Down
MSFT
$514.33
-0.5%
-$2.70
Arrow-Thin-Down
NVDA
$198.69
-4.0%
-$8.19
Arrow-Thin-Down
TSLA
$444.53
-5.1%
-$23.84
Daily Stock GainersDaily Stock LosersMost Active Stocks

How to Calculate Direct Labor Rates in Accounting

Calculating the labor costs directly associated with the production of a product or delivery of a service.

By Motley Fool Staff – Updated Apr 23, 2025 at 12:36 PM

Key Points

  • 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 costs helps optimize production and improve efficiency.
Loading paragraph...
Loading image...
Loading paragraph...
Loading pitch...
Loading paragraph...
Loading hub_pages...
Loading pitch...
The Motley Fool has a disclosure policy.

Our Guides

Documents and a calculator
How to Calculate Net Change in Cash From a Cash Flow Statement
How to Calculate Accrued Interest
How to Calculate Accrued Interest
Two people sit at table with calculator and paperwork.
How to Calculate Semi-Annual Bond Yield
Man in front of blackboard with investing-related pictures and words drawn on it
How to Calculate a Monthly Return on Investment
stock certificates
How to Calculate the Number of Shares a Company Has
how-to-calculate-the-price-of-a-treasury-bill-infographic
How to Calculate the Price of a Treasury Bill
GettyImages-1309118129.jpg
Calculating the Percentage of an Over-Budgeted Amount
Yellow road sign warning Volatility Ahead against backdrop of beautiful blue sky
How to Calculate Annualized Volatility
Calculator and paperwork on desk
How to Calculate Tax on W-9 Income
how-to-calculate-taxable-amount-of-ira-withdrawal-infographic
How to Calculate the Taxable Amount of an IRA Withdrawal
A business person calculating profit from revenue.
How to Calculate Revenue Growth for 3 Years
red decline stocks down bear
How to Calculate the Percentage of Annual Decline
A small child hitting a baseball off of a tee
How to Calculate the Present Value of Free Cash Flow
A person making a financial calculation.
How to Calculate Average Shareholder Equity
Someone writing a complex mathematical equation on a chalk board.
How to Calculate Interest Rate Using Present and Future Value
Businessperson reviewing income statement
How to Calculate the Net Worth on Financial Statements
Hands pulling a paycheck out of an envelope
How to Calculate Take-Home Pay as a Percentage of Gross Pay
how-to-calculate-interest-rates-and-penalties-on-late-taxes-infographic
How to Calculate Interest Rate and Penalties on Late Taxes
Person sitting in front of blocks spelling GDP.
How to Calculate the Annual Growth Rate for Real GDP
Hands pulling a paycheck out of an envelope
How to Calculate Taxes Using a Paycheck Stub

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.

View Premium Services