What Is the Formula for the Average Product of Labor

question 167

Multiple Choice

What is the formula for the average product of labor?

• A) Δq/ΔL
• B) ΔL/Δq
• C) q/L
• D) L/q

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Definitions:

Manufacturing Overhead

includes all the indirect costs associated with the production process, such as utilities, maintenance, and factory equipment depreciation, which are not directly traceable to a specific product.

Traditional Costing System

A costing methodology that assigns manufacturing costs to products based on volume metrics such as direct labor hours or machine hours.

Unit Product

A specific item or version of a product, distinct in unit size or configuration, produced by a company.

Direct Labor-Hours

The total time workers spend producing a product or performing a service, specifically those directly involved in manufacturing.